INTENTIONAL MISREPRESENTATION Flashcards
MBE TORTS - NEGLIGENT MISREPRESENTATIONM
Negligent misrepresentation is based upon a breach of the duty to supply correct information and often arises in the context of accountants and other suppliers of commercial information (e.g., attorneys). This tort requires proof of the following elements:
The defendant negligently provided false information during the course of his/her business or profession.
The plaintiff justifiably relied upon the false information and suffered pecuniary (i.e., financial) loss as a result.
The plaintiff was in a contractual relationship with the defendant or was a third party known by the defendant as one for whose benefit the information was supplied.
However, a defendant who negligently provides information for a particular purpose is not liable for the plaintiff’s financial loss if the plaintiff used the information for a different purpose.
