What is negligent misstatement tort law?

What is negligent misstatement tort law?

A negligent misstatement is information or advice which is honestly provided but is inaccurate or misleading. The duty will arise whenever a person gives information or advice to another, whether that information is actively sought or merely accepted by that other upon a serious matter… and the relationship…

What is negligent misstatement UK?

An action for negligent misstatement arises where Party A has carelessly made a statement to Party B, where the relationship between the parties is such that Party A owes Party B a duty of care. A negligent misstatement claim is brought at common law in tort.

What are the elements of the tort of negligent misstatement?

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.

Is negligent misrepresentation a tort or contract?

Negligent misstatement is not strictly part of the law of misrepresentation, but is a tort based upon the 1964 obiter dicta in Hedley Byrne v Heller where the House of Lords found that a negligently-made statement (if relied upon) could be actionable provided a “special relationship” existed between the parties.

What is the remedy for negligent misstatement?

If a misrepresentation is fraudulent or negligent, the claimant may claim both rescission and damages under s2(1) of the Misrepresentation Act 1967 (the Act). If a misrepresentation is negligent or innocent, the court has the discretion to award rescission or damages in lieu of rescission under s2(2) of the Act.

How do you prove negligent misstatement?

What is negligent misstatement?

1. The defendant owed a duty of care;
2. The defendant breached that duty of care; and.
3. The breach caused the claimant harm.

What are the remedies for negligent misstatement?

The remedies for misrepresentation are rescission and/or damages. For fraudulent and negligent misrepresentation, the claimant may claim rescission and damages.

What is the effect of a negligent misrepresentation?

What is the effect of negligent and fraudulent misrepresentation? The party can either rescind (cancel) the contract or keep the contract and sue.

What are the remedies for negligent misrepresentation?