Margaret is a stockbroker and is often asked by clients for advice on investing in shares. Margaret is at her office one day when Buster, an old friend, drops in to visit her.During their conversation Buster tells Margaret that he has just retired and has some money to invest. Margaret suggests a few companies that would be safe for investment. They then go to lunch.Buster invests in one of the companies suggested by Margaret. After six months the company is placed in liquidation and Buster loses most of his money.

a. Buster approaches you for advice. Explain what Buster must prove to successfully sue Margaret in negligent misstatement

b. Would the situation be any different if Buster had paid Margaret for advice? Explain.

Answer rating: 100% (QA)

a To successfully sue Margaret in negligent misstatement Buster would typically need to prove the fo... View the full answer