Negligent Misrepresentation

Negligent misrepresentation occurs when a person provides false information to another party without taking reasonable care to ensure its accuracy. Unlike fraud, there is no intent to deceive; instead, the person simply fails to verify facts that they should have. If the misrepresented information leads the other party to make a decision that results in financial loss or damages, the person who gave the misleading information can be held legally responsible. This concept emphasizes the importance of honesty and responsibility in sharing information, especially in business or professional contexts.