The bank makes the mistake of believing the arguments to be sufficient to expect me to repay the loan.
I made the mistake of badly choosing who I'd then pay those funds to and gave them to the wrong individual which commits a financial fraud (accepting payment and not delivering anything in return.) I myself made the mistake that hinders the repayment of the loan, causing loss to the bank.
I agree. This is not common mistake. This is the bank making one mistake and the borrower making a different mistake.
The mistake is far from being common. The depositor blindly believe Patrick can be expected to deliver based on his arguments. They put themselve in the situation, it was a mistake, but it does not cause the loss of the deposit being irrecoverable, just like you didn't cause the loss of the test's costs by accepting your doctor's claims.
If this mistake didn't cause the loss of the deposit, what do you think did?!
The loss is caused to the depositor when Patrick loaned the funds to wrong person who then didn't pay him back, something over which the depositor had no control. Patrick bears the responsibility of making that mistake.
Patrick didn't loan funds "to the wrong person". Patrick followed his business model. Patrick didn't do anything his investors didn't ask him to do.
There was no other question Patrick could have asked, no other investigation he could have done, no magic word he could have said, no wand he could have waved. If we could learn at least one thing from this fiasco, it's that high returns always come with high risks. The odds that you will be the one person who finds the exception to this tried and true rule are vanishingly small, and thus, it is axiomatically true. His investors recklessly and foolishly accepted that his business model was sensible and said so to him, a statement he is as entitled to rely on as they are to rely on any statements *he* makes.
The mere fact that the depositor not making the mistake of giving Patrick the funds he asked for his business would have not enabled Patrick to make that loss does not make them responsible.
I agree, that's why I never argued that. The fact that they made precisely the same mistake he did, where that mistake was directly the cause of the loss, and that neither party would have entered into the contract but for the mistake makes them partly responsible. (And, in the specific case of MP, specifically agreed with the mistake.)
Consider this: should a person making the mistake of handling over a knife to some shady individual asking for it to cook would place that personal equally responsible for the death of someone when said individual proceeds to kill somebody, because you enabled that murder? Both made the mistake to entrust something they shouldn't have to someone they did not really know, enabling a loss to someone (Financial to yourself in the first case or of someone else's life in the later). Both giving party made a mistake enabling something to happen by entrusting their property to someone else, which is a far different from the mistake of doing the mishandling creating the loss when you had no control of it.
No, they made completely different mistakes.
When you accepted your doctor's claim, you enabled the loss by proceeding with the test which would have been impossible otherwise. But you did not cause it, the doctor did by promising you would not pay and then the insurer not paying as he expected, so he paid for the test since he promised you would not pay for it. I could argue you are just as responsible as Patrick's depositor who did not do due diligence in investigating before proceeding. Had you had investigated and called your insurer, you would have known the test was not covered and the doctor would not have to bear the loss.
Right, but I reasonably relied on a factual claim by my doctor which turned out to be false. The factual claim Patrick made was true.
The first makes a mistake which enables the situation to happen. The person who made the promise the other would incur no financial loss makes the actual mistakes which cause his own loss, regardless if he was mistaken on his external parties on which he base his promises (such as the doctor) or if those parties outright scammed him like for Patrick.
Patrick didn't make any kind of promise that wasn't perfectly valid. If you say "X because Y", you are promising Y, not X. Patrick said "X because Y", and Y was correct. However, X did not follow from Y. You can't promise that a conclusion follows from a premise.
And in this case, MP was better situated than PH to catch the mistake in reasoning. MP was specifically looking for indirect Pirate risk, PH was not.