Asked by Jessica Pierre on Jul 05, 2024

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When the party making the statement would have known the truth about the fact had he used reasonable care to discover or reveal it, a negligent misrepresentation results.

Negligent Misrepresentation

A false statement of material fact made by a person who thinks it is true but who would have known the truth about the fact had he or she used reasonable care to discover or reveal it.

Reasonable Care

The degree of caution and concern an ordinarily prudent and rational person would use in similar circumstances, typically used in legal contexts.

  • Attain an understanding of the concept of fraudulent misrepresentation, including its essential elements such as intent and scienter.
  • Gain insight into the distinction between nondisclosure, innocent misrepresentation, and fraudulent misrepresentation, and their consequences for contract law.
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Verified Answer

SF
sianni faustJul 07, 2024
Final Answer :
True
Explanation :
Negligent misrepresentation occurs when an individual makes a false statement without exercising reasonable care to discover or reveal the truth, which could have been known had such care been taken.