What is "negligent misrepresentation"?

Negligent misrepresentation occurs when a party provides false information or makes a statement that they should have known was false, and this misrepresentation leads to another party being harmed or suffering a loss. The key element here is the absence of due care; it signifies a failure to take sufficient precautions when providing information. This could involve situations where someone provides guidance, opinions, or data in a professional capacity, yet does not ensure that the information is accurate or reliable.

Due care is vital because it establishes that the party disseminating the information had a responsibility to verify its accuracy and failed to do so, resulting in the misrepresentation. The focus is on the lack of intent to deceive, distinguishing negligent misrepresentation from fraud, which includes the intent to mislead.

The other options refer to different types of actions that do not align with the legal principles defining negligent misrepresentation. For example, intentionally providing incorrect information involves deceit rather than negligence, while failing to provide information or withholding relevant facts does not relate directly to the provision of false information. Each of those actions falls outside the framework of negligent misrepresentation, as they either imply a different intent or context.