Advice, unless fraudulent, does not create an obligation.

Explanation

A man who gives honest counsel is not bound by it — liability arises only where the advice is fraudulently given to induce reliance and cause injury.

Where this applies

• A friend recommends a particular stock in good faith, and the stock tanks — the friend is not liable because honest advice, even when wrong, does not create a legal obligation.
• A mechanic tells a car owner that he thinks the engine will last another year, and it fails in six months — the mechanic gave his honest opinion without guaranteeing the outcome, so no obligation arises from his advice.
• A financial advisor deliberately misleads a client into investing in a scheme the advisor knows is fraudulent — here the advice was given with intent to deceive, and the advisor is liable because fraudulent counsel does create an obligation.

See also

• 6.1.1 Consent makes the law.
• 6.3.4 From a bare agreement without consideration, no action arises.