tort law · claim
Negligent misrepresentation occurs when a party fails to exercise reasonable care in obtaining or communicating information to another, leading to a false statement that induces reliance and causes economic harm. The tort arises from a breach of a duty to provide accurate information.
There must be a misrepresentation that is materially false and pertains to a significant fact.
What to prove: The plaintiff must demonstrate that the defendant made a statement that was untrue and that it concerned a fact that would influence a reasonable person’s decision.
The defendant must have failed to use reasonable care in ascertaining the truth of the information provided.
What to prove: Plaintiff must show that the defendant did not act as a reasonably prudent person would have in verifying the information before communicating it.
The plaintiff must have relied on the misrepresentation in a manner that was reasonable under the circumstances.
What to prove: The reliance must be shown to be justified, meaning a reasonable person in the plaintiff's position would have relied on the false statement.
Actual damages must have resulted from the plaintiff’s reliance on the misrepresentation.
What to prove: The plaintiff must provide evidence of economic harm that directly arose from their reliance on the misrepresentation.
The plaintiff bears the burden of proof, and the standard for establishing negligent misrepresentation is typically a preponderance of the evidence.
Negligent misrepresentation often appears on exams in hypotheticals involving contractual negotiations, so pay attention to the elements related to reliance and damages when analyzing such scenarios.