Negligent misrepresentation occurs when the defendant carelessly makes a representation while having no reasonable basis to believe it to be true. When a defendant who is involved in a transaction in which he or she has monetary interest and provides false information for the guidance of others in a business transaction to theirs, they are subject to liability for financial losses caused by the justifiable reliance of someone who intended to rely upon that information.
Below are the essential elements of a claim of negligent representation:
Since Misrepresentations are civil offenses, you can only sue for them in civil court. The general remedy in civil court for all types of misrepresentations is that of rescission. Rescission is defined as the unmaking of a contract between parties, thus unwinding a transaction. This means the court will act like the transaction or contract never existed, and everyone would go back to the position in which they were before they entered into the contract. Rescission can be done either by informing the represent or by requesting an order from the court.