How is "negligent misrepresentation" defined?

Negligent misrepresentation is defined as providing false information without the intent to deceive. This concept occurs when an individual or entity provides inaccurate information that they should have known was false due to their failure to exercise reasonable care in ascertaining the truth. Negligent misrepresentation typically involves a party that possesses a professional duty or skill in a particular field, and their reliance on maintained accuracy leads to a false statement that results in harm to another party.

The emphasis is on the lack of intent to deceive, marking a clear distinction from fraud or intentional misrepresentation, where deceit and intent to manipulate are present. The focus on a failure to exercise reasonable care allows individuals harmed by such misrepresentations to seek legal remedies, given that the information was presented in a way that led others to rely on it, even without malicious intent.

Understanding this definition is crucial in legal contexts, particularly in cases involving professional advice, financial statements, or other instances where one party's failure to ensure the accuracy of information causes damage to another party. This principle helps to establish accountability for the dissemination of misleading information, even if it was not knowingly false.