Compensation Of Pure Economic Loss Caused By Misrepresentation

With the continuous advancement of the division of work, as the boundconnecting the main market players, information plays a significant role in differentparties accessing their own interests. As people highly rely on information resources,it happens a lot in practice that people suffer pure economic loss because of others’misrepresentation. However, the Court is often in a dilemma when selecting theindemnification bases and confining spectra, due to the uncertainty of compensationtargets and extent of compensation of the pure economic loss of misrepresentation. Sowhat should be urgently solved is how to build a compensation system that can protectvictims’ rights and avoid endless litigation. In advanced countries, the marketeconomy system has been established and developed for hundreds of years; they havemore experience and theory contents in dealing with the compensation of the pureeconomic loss of misrepresentation, and based on that, they gradually form a faircomplete compensation system. including the practical compensation mode in UK,Germany’s conservative compensation mode and the French open compensation mode.Compared with advanced countries, China shows its immaturity in dealing with thepure economic loss of misrepresentation. Tort Liability Act has been promulgated, ittakes a more open attitude to the protection of civil interests. The liability of pureeconomic loss caused by misrepresentation has the basis of the tort law’ proctection.However, due to the broad design ideas in Tort Liability Act, its Guidelines on therole of protection of pure economic loss of misrepresentation is limited. To make upfor for these shortcomings,and consider current judicial practice at the same time,practical compensation model of the Anglo-American law Undoubtedly provides animportant reference for China’s application of the liability of pure economic loss ofmisrepresentation. dual imputation system adopted for the different groups,"Foreseeability" standard to controlling the scope of the third person, the principle ofreasonable reliance in identifying causality,considerations in determineing the scopeof compensation and so on. all have great value for China’s application of the liabilityof pure economic loss of misrepresentation.