Negligent Misrepresentation

Pronunciation: NEG-lih-jent mis-rep-ree-zen-TAY-shun

Torts › Economic Torts

Definition

Negligent false statement made in business or professional capacity with intent that plaintiff rely, plaintiff justifiably relies, causing pecuniary loss. Distinguished from fraud (no scienter required) and ordinary negligence (requires professional/business relationship). Limited to those in privity or whom defendant knew would rely. Restatement limits to information supplied for business transactions.

Related terms

• Intentional Interference with Contract — Defendant intentionally and improperly causes third party to breach valid contract with plaintiff causing economic harm. Requirements: (1)…
• Intentional Interference with Prospective Economic Advantage — Defendant intentionally interferes with plaintiff's reasonable expectation of economic benefit from prospective business relationship. More difficult to prove…

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