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Negligent Misrepresentation is when a party negligently makes a false statement of fact to another party, which has the effect of inducing that party to enter into a contract.
The elements of negligence misrepresentation are:
- In the course of his business, profession or employment, or in any other action in which he has a pecuniary interest,
- Supplies false information for the guidance of others in their business transactions,
- Is subject to liability for pecuniary loss caused to them
- By their justifiable reliance upon the information,
- If he fails to exercise reasonable care or competence in obtaining or communicating the information.