Negligent Misrepresentation Defenses

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Negligent Misrepresentation Defenses

When people think of misrepresentation, they often think of fraudulent misrepresentation. However, there are two kinds of misrepresentation that are possible: fraudulent and negligent. Fraudulent misrepresentation is an intentional tort that involves making a false statement of fact to lure someone into signing a contract. Since negligent misrepresentation is based on negligence and not fraud, not all of the same defenses can be used for both kinds of misrepresentation.

What Is Negligent Misrepresentation?

This type of negligence involves making a false statement of during a course of employment or business dealing to induce another party into making a contract. The person is considered careless because they make the statement without knowing if it is true or false.
For example, a salesman claims a cell phone that they are trying to sell has specific features without knowing if it does or not. He would be liable for committing negligent misrepresentation if the plaintiff was harmed by the misleading fact.

What Are Some Defenses to Negligent Misrepresentation?

A defendant can use these general defenses to a negligent misrepresentation claim:

Should I Discuss Negligent Misrepresentation with a Lawyer?

Yes, as negligent misrepresentation is a very serious claim that can have a lasting impact on your professional reputation. If you are being sued for misrepresentation, talk to a business lawyer about the defenses available to you.

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Last Modified: 11-24-2015 06:32 PM PST

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