Negligent misstatement refers to providing false information or advice without due care, leading to financial loss for the recipient who relied on it. It is a form of negligence that specifically deals with statements rather than actions.
Negligent misstatement often arises in professional settings where advice is given, such as financial or legal consultations. A landmark case is Hedley Byrne & Co Ltd v Heller & Partners Ltd (1964), which established that a duty of care can exist in providing information or advice. In exams, you might be asked to analyse scenarios where negligent misstatement could apply and discuss the elements required to establish a claim, such as duty of care, breach, and reliance.
Check out our Tort Law Notes for deeper case law, examples, and revision tips.