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Negligent misrepresentation occurs when a person or business provides false information to another party, leading them to rely on that information during a business transaction. Under Nevada law, this can result in liability for any financial loss suffered by the relying party if the provider did not exercise reasonable care in obtaining or conveying the information. This legal concept emphasizes the importance of accuracy and diligence in business communications.
Table of content
Legal Use & context
Negligent misrepresentation is primarily used in civil law, particularly in cases involving business transactions, contracts, and consumer protection. It can arise in various contexts, such as real estate transactions, financial services, and corporate communications. Individuals or businesses may utilize legal forms to assert claims of negligent misrepresentation or to defend against such claims, making resources like US Legal Forms valuable for those seeking to navigate these situations independently.
Key legal elements
Real-world examples
Here are a couple of examples of abatement:
Example 1: A real estate agent informs a potential buyer that a property has no structural issues based on a casual inspection. If the buyer relies on this information and later discovers significant problems, the agent may be liable for negligent misrepresentation.
Example 2: A financial advisor provides incorrect information about an investment's performance, leading a client to make poor financial decisions. The client may seek damages for any losses incurred due to the advisor's negligence. (hypothetical example)
Relevant laws & statutes
Negligent misrepresentation is governed by common law principles and specific state statutes. In Nevada, the relevant case law includes Majestic Star Casino, LLC v. Trustmark Ins. Co., which outlines the responsibilities of parties providing information in business contexts. Other states may have similar or varying interpretations of negligent misrepresentation.
State-by-state differences
State
Key Differences
Nevada
Follows the common law definition with emphasis on business relationships.
California
May include additional requirements for proving reliance and damages.
New York
Focuses on the intent of the provider and the nature of the relationship.
This is not a complete list. State laws vary and users should consult local rules for specific guidance.
Comparison with related terms
Term
Definition
Key Differences
Fraud
Deliberate deception to secure unfair or unlawful gain.
Fraud requires intent to deceive, while negligent misrepresentation does not.
Misrepresentation
Providing false information, which can be intentional or negligent.
Negligent misrepresentation specifically involves a lack of reasonable care.
Common misunderstandings
What to do if this term applies to you
If you believe you have been a victim of negligent misrepresentation, consider taking the following steps:
Gather evidence of the false information and your reliance on it.
Document any financial losses incurred as a result.
Consult a legal professional to discuss your options and determine if you have a valid claim.
Explore US Legal Forms for templates that can help you file a claim or respond to allegations.
Find the legal form that fits your case
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