Define: Negligent Misrepresentation

Negligent Misrepresentation
Negligent Misrepresentation
Quick Summary of Negligent Misrepresentation

Negligent misrepresentation occurs when an individual makes a false statement without the intention to deceive, but fails to exercise due care. This can occur through verbal or written communication, as well as through actions. Although the false statement may be innocent or unintentional, it can still result in harm to the person who relies on it.

Full Definition Of Negligent Misrepresentation

Negligent misrepresentation occurs when an individual makes a false or misleading statement without the intention to deceive, but fails to exercise sufficient caution in ensuring the accuracy of the statement. This can encompass verbal or written statements, as well as any other behaviour that amounts to a false assertion. For instance, if a real estate agent informs a potential buyer that a house has a new roof without actually verifying this information, it may be deemed as negligent misrepresentation. Similarly, if a car salesman assures a customer that a used car has never been involved in an accident without checking its history report, it can also be considered negligent misrepresentation. These examples highlight how individuals can make false statements unintentionally, yet they still bear the responsibility of ensuring the truthfulness of their claims. Failure to exercise reasonable care in verifying the accuracy of a statement can result in legal liability for any harm caused by the false statement.

Negligent Misrepresentation FAQ'S

Negligent misrepresentation occurs when someone makes a false statement or provides misleading information, without reasonable grounds for believing it to be true, which causes harm or loss to another party.

To establish a claim for negligent misrepresentation, the following elements must be proven: (1) a false statement of fact, (2) made with knowledge of its falsity or reckless disregard for the truth, (3) with the intent to induce reliance, (4) justifiable reliance by the injured party, and (5) resulting damages.

Yes, negligent misrepresentation can occur in both oral and written statements. It is not limited to any specific form of communication.

The main difference between negligent misrepresentation and fraud lies in the intent of the person making the false statement. In negligent misrepresentation, the person may not have intentionally deceived the other party, but they were careless or negligent in providing false information. In fraud, there is a deliberate intent to deceive.

A negligent misrepresentation claim can be brought against both individuals and business entities. As long as the elements of negligent misrepresentation are met, any party can be held liable.

Some common defences to a negligent misrepresentation claim include lack of justifiable reliance, absence of duty to disclose, absence of damages, and the statement being a mere opinion rather than a statement of fact.

Yes, a negligent misrepresentation claim can be brought against a professional if they provide false information or make misleading statements in the course of their professional duties. However, the standard of care may be higher for professionals compared to non-professionals.

If a negligent misrepresentation claim is successful, the injured party may be entitled to various remedies, including monetary damages to compensate for the losses suffered as a result of the misrepresentation.

No, unlike fraud claims, negligent misrepresentation claims do not require proof of fraudulent intent. It is sufficient to show that the false statement was made without reasonable grounds for believing it to be true.

Yes, a negligent misrepresentation claim can be brought against a government entity if it meets the elements of negligent misrepresentation. However, there may be additional procedural requirements or limitations when suing a government entity, so it is advisable to consult with an attorney familiar with government liability.

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This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.

This glossary post was last updated: 17th April 2024.

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