Negligent Mistatment

Question 1

What is Negligent Mistatement?

Answer 1

Involves careless advice or information given by someone with expertise leading to another party’s financial loss

Question 2

Elements of Negligent Misstatement

Answer 2

• Duty of Care
• Special relationship
• Breach of Duty
• Reliance
• Causation & loss

Question 3

What Duty of care does one have in Negligent mistatment?

Answer 3

a person owes a duty of care to another when providing advice or information, particularly if it is reasonably foreseeable that the other party would rely on that information and may suffer a loss

Question 4

Special relationship

Answer 4

Between the two parties, there was trust, there was a reliance on the other party.

Question 5

Breach of duty

Answer 5

The party provided incorrect or misleading information. The breach occurs when the defendant fails to meet the standard of care that a reasonable person in their position would have met when making the statement

Question 6

Reliance on the mistatement

Answer 6

The plaintiff relied on the false or inaccurate statement made by the defendant. The plaintiff made a decision or took action based on the mistatement, and the reliance on the statement was reasonable

Question 7

Causation and Loss

Answer 7

The plaintiff must show that the negligent misstatement caused them economic loss. The loss must be clearly directly linked to the reliance on the statement and it must not be too remote