Negligent misrepresentation is a civil claim based on careless false information that another person reasonably relies on to their detriment.
It usually involves a statement made without reasonable care, rather than an intentionally false statement.
Why negligent misrepresentation matters
Business, professional, real estate, and consumer decisions often depend on information supplied by someone else. A careless false statement can cause financial loss even without intentional fraud.
The claim helps separate ordinary mistakes from legally actionable misinformation.
Where negligent misrepresentation appears
Negligent misrepresentation appears in real estate transactions, professional services, business sales, lending, insurance, investment communications, and contract-related disputes.
The elements vary by jurisdiction and may depend on the relationship between the parties.
How it differs from nearby terms
Negligent misrepresentation is based on careless false information. Fraud usually requires intentional or knowing deception.
Negligence is broader and can involve careless conduct, not just careless statements.
Practical example
A seller carelessly gives a buyer incorrect revenue figures for a small business. The buyer relies on those figures and overpays. The buyer may assert negligent misrepresentation if the legal elements are met.
Related Terms
Quick check
Question: Does negligent misrepresentation require a careless false statement?
Answer: Yes. The claim generally focuses on false information supplied without reasonable care.