Example: A, a lawyer, is asked by B, a businessperson, to check the provisions in a written contract of lease. B intends to use this contract to lease his factory to C. A does not check the lease carefully but advises B that it looks all right. In fact, there are several errors in the lease and one of them proves important when C refuses to pay for some alterations to the factory. B suffers purely financial loss as a result.
Comment: In this case, B's loss is the result of the negligent act of a person who is providing professional services, in particular, a lawyer. A barrister and solicitor cannot be sued in Negligence for acts done in court during the conduct of a case, but there is no immunity for work done outside of the courtroom. So a lawyer who fails to act with reasonable skill and care in the exercise of their professional affairs may be liable both to their clients and also to other persons for economic less suffered as a result.
Apart from lawyers, other professionals may be liable for economic loss caused by negligent acts, omissions or advice. The courts have applied the same principle in the following cases:
Auditors have been held liable for failing to exercise reasonable care in auditing a company's accounts.
Engineers have been held liable for negligent designs that have caused loss.
A bank has been held liable for failing to properly monitor a client's offshore loan.