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The legal issue involved in the case which the High Court had to determine was related to the negligent advice and the negligent misstatement leading to physical damage along with pure economic loss. The negligent advice or negligent misstatement has been debated in the courts of Australia n number of times and many appellants have raised the concern of pure economic loss arising out of the same. In the current research paper, we have taken the case of Finance Corporation Limited Appellant (Esanda) v Hungerfords Respondent (Peat Marwick). The case law speaks about the above mentioned negligent advice with reference to different case laws that has come to the notice of the court and draws a conclusion on the effect of such negligence and whether such negligence has proximity with the pure economic loss Cook, D. (1938).
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