What is the significance of determining that the misrepresentation was negligent rather than innocent?

Negligent Misrepresentation

A false statement made carelessly that causes someone to incur a loss or damage, often addressed in cases of fraud or deceit.

Innocent Misrepresentation

A false statement made without knowledge of its falsity, leading another to enter into a contract under false beliefs.

Distinguish between different types of misrepresentation (fraudulent, negligent, and innocent) and understand the remedies available.

Verified Answer

Final Answer :

The remedy of damages will be available as well as rescission.

Learning Objectives

Distinguish between different types of misrepresentation (fraudulent, negligent, and innocent) and understand the remedies available.