Question
Lau intended to invest in commercial properties. He had asked a friend, Ng, who is an estate agent, to advise on suitable purchases. They never
Lau intended to invest in commercial properties. He had asked a friend, Ng, who is an estate agent, to advise on suitable purchases. They never made a contract. Lau had no knowledge of the risks involved in buying commercial properties and had made it clear that he would be relying on Ng's skill and judgment. Ng recommended buying two shops near to residential areas with the stated aim that the shops would become fast food restaurants. Ng was confident that there would not be any planning permission problem with the shops and did not conduct any inquiry with the local authority. Lau bought the shops on the basis of Ng's recommendation. Lau later discovered that the shops would not get planning permission to serve hot food due to its immediate proximity to residential houses, and has suffered a substantial loss of income from the shops as a result.
Advise Lau as to whether he can bring a claim in negligence against Ng
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