Asked by Grant Haake on May 04, 2024
Verified
A negligent misrepresentation results when the party making the statement would have known the truth about the fact had he used reasonable care to discover or reveal it.
Negligent Misrepresentation
A false statement made carelessly that induces another party to enter into a contract, resulting in harm or damage.
Reasonable Care
A legal standard requiring individuals or organizations to act with the level of caution and vigilance that a prudent person would under similar circumstances, to prevent harm to others.
- Identify the differences between types of misrepresentations (fraudulent, negligent, innocent) and comprehend their respective implications.
Verified Answer
WC
WESTCOAST COLLECTIVE PODCASTMay 08, 2024
Final Answer :
True
Explanation :
In some contract negotiations,one party makes a statement of material fact that he thinks is true,but he is negligent in making the assertion.Such a negligent misrepresentation results when the party making the statement would have known the truth about the fact had he used reasonable care to discover or reveal it.
Learning Objectives
- Identify the differences between types of misrepresentations (fraudulent, negligent, innocent) and comprehend their respective implications.