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KembaraXtra – Legal Terms – Negligent Misstatement
A negligent misstatement is a false statement made honestly but carelessly by one person to another.
The statement may concern facts, opinions, or information that causes another person to rely on it and suffer loss. An opinion can amount to a factual representation if it implies that reasonable grounds exist for holding that opinion.
Courts determine whether a statement is false by considering what a reasonable person would understand from the words and surrounding conduct of the person making the statement.
A negligent misstatement only gives rise to liability where a duty of care existed between the parties and it was reasonable for the claimant to rely on the statement.
This area of law developed through important cases such as Hedley Byrne v Heller and may also overlap with contract law and statutory remedies for misrepresentation.
A negligent misstatement is a false statement made honestly but carelessly by one person to another.
The statement may concern facts, opinions, or information that causes another person to rely on it and suffer loss. An opinion can amount to a factual representation if it implies that reasonable grounds exist for holding that opinion.
Courts determine whether a statement is false by considering what a reasonable person would understand from the words and surrounding conduct of the person making the statement.
A negligent misstatement only gives rise to liability where a duty of care existed between the parties and it was reasonable for the claimant to rely on the statement.
This area of law developed through important cases such as Hedley Byrne v Heller and may also overlap with contract law and statutory remedies for misrepresentation.
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