Other Torts

Question 1

Negligent Misrepresentation

Answer 1

The elements of negligent misrepresentation are:

(i) the defendant provided false information,
(ii) as a result of the defendant’s negligence,
(iii) during the course of his business or profession,
(iv) causing the plaintiff to justifiably rely upon the information, and
(v) the plaintiff either is in a contractual relationship with the defendant or is a third party known by the defendant as one for whose benefit the information is supplied.

However, the Plaintiff is not liable if the third party’s use of the information is of a different character than the use for which the accountant provided the information.