Why study the hard way when you can do it the smart way?

Online Legal Coach was built for law students preparing for their exams. Discuss your tutorial questions in our forum and have them answered by legal experts, and prepare for your exams with our study guides and videos on every law subject. 

Sign up for your free membership today!

As a member you get access to our study guides, student forum, form your online study groups and participate in contests. Get the head start in your law exams! Sign up now for free.

Pure Economic Loss

Posted on: Thu, 03/20/2008 - 18:21
tanysiang88
Posts: 2
Joined: 2008-02-23
User is offline

hi, can anyone explain wat is define as pure economic loss in tort of negligence? thanks..

Posted on: Sat, 03/22/2008 - 14:27 #1
adrian
Posts: 173
Joined: 2007-12-06
User is offline

i wont say that i could give you a great definition

but what i will say is that if the loss is purely economic e.g. the value of the loss only - if the car has lost its value if it has been damaged and could not be called accident free, its purely economic

Posted on: Fri, 03/28/2008 - 12:23 #2
doglover_kelly
Posts: 2
Joined: 2008-03-28
User is offline

Ok let me try to answer this question.

First lets define economic loss. This is when you lose some form of monetary value. If someone knocked into your car, it would be damage to property ie your car. But also it would be economic loss because of the money you need to spend to fix the car.

 So how does economic loss become pure? This is when there has been no personal injury or damage to property, merely you have lost profits of some sort or of some monetary value. For example, if i told you to buy stocks in KLSE tomorrow because the price of shares will go up and i tell you to trust me. So then you buy the stocks and instead of going up, the price dropped drastically. Now i didn't hurt you physically nor did i damage anything of value to you, but you lost money because of me. Pure Economic Loss!