What is an example of negligent misrepresentation?

What is an example of negligent misrepresentation?

Negligent misrepresentation occurs when someone makes a statement without regard to the true facts. For instance, if you tell a person that a stereo system is brand new when it is four-years-old and has been used heavily, then this can be considered negligent misrepresentation.

What is negligent misrepresentation law?

Negligent misrepresentation: a representation made carelessly and in breach of duty owed by Party A to Party B to take reasonable care that the representation is accurate.

How is negligent misrepresentation treated?

The remedy for negligent misrepresentation is contract rescission and possibly damages. The third type is a fraudulent misrepresentation. A fraudulent misrepresentation is a statement that the defendant made knowing it was false or that the defendant made recklessly to induce the other party to enter a contract.

What damages are available for negligent misrepresentation?

If the misrepresentation is fraudulent or negligent the court can award damages and rescind the contract, although where negligent misrepresentation occurs the court does have discretion to award damages in lieu of rescission.

Is negligent misrepresentation covered by insurance?

Negligent misrepresentation is included within the definition of fraud. Therefore, there can be no insurance coverage for the seventh cause of action as a matter of law. insurable under § 1668 and Insurance Code § 533.

Can you sue someone for negligent misrepresentation?

Under real estate and contract law, negligent misrepresentation is a civil wrong. This means the victim of negligent misrepresentation can sue for money damages in a court of law. Negligent misrepresentation in the contract setting is the failure to verify whether a statement of fact in a contract is truthful.

What are the elements of negligent misrepresentation?

3 Elements: (Hedley Byrne & Co Ltd v Heller & Partners Ltd) 1. A duty of care when providing the information; 2. Breach of the standard of care; and 3. Loss or damage caused by reliance on the misrepresentation.

What is inadvertent misrepresentation?

A statement made by the defendant, with the intent to deceive, that is known to be false or made recklessly and without regard to whether it is true or not. Negligent Misrepresentation: A careless or inadvertent false statement in circumstances where care should have been taken.