Question

What is the tripartite test?

Answer 1

Tripartite test is a test of establishing duty of care. It has its reference from case of Caparo vs Dickman (1990) UKHL 2, Caparo bought shares in the company of which the report was about as part of a takeover. The appellant party had relied upon the results of the report. However, it was later found that the results of the report had misrepresented the profits of the firm, in turn causing a loss for Caparo. This case led tin establishment of general duty of care known as Tripartite test which states -

As per English tort law, an individual may owe a duty of care to another, to ensure that they do not suffer any unreasonable harm or loss. If such a duty is found to be breached, a legal liability is imposed upon the person who commits the tort to compensate the victim for any losses they incur. The idea of individuals owing strangers a duty of care – where earlier such duties were only found from contractual arrangements.

The principles mentionedin Caparo v Dickman specify a tripartite test:

1. Was the harm reasonably foreseeable?
2. Was there a requisite degree of proximity between the claimant and the defendant?
3. Is it fair, just and reasonable to impose a duty of care; are there precluding public policy concerns?