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The criteria for negligent misstatements in Mutual Life and Citizens’ Assurance Co Ltd v Evatt [1968] 122 CLR 556 have also been met. Sally’s advice is relating to buying large amount of shares in the Ricky company that is a serious business matter. Sally, an advisor, was clearly trusted by Leroy. And Leroy regularly acted in accordance to her advice. Because she gave the advice so confidently and surely that it would be a profitable investment, it is reasonable that Leroy would rely on it as he did with her previous advice. Thus, Sally can be found liable for negligent misstatement. |