Negligent Misrepresentation
/ˈnɛɡlɪdʒənt ˌmɪsprɛzənˈteɪʃən/
Definitions
- (n.) A false statement made carelessly that induces another party to enter into a contract or transaction, resulting in legal liability for damages.
The plaintiff sued for negligent misrepresentation after relying on the inaccurate financial report provided by the defendant.
Related terms
See also
Commentary
Negligent misrepresentation differs from fraud in that it requires a lack of reasonable care rather than intent to deceive. Drafting should emphasize the duty of care and reliance components to establish liability.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.