How is negligent misrepresentation practiced?

Negligent misrepresentation occurs when one party provides false information to another party without exercising reasonable care to ensure its accuracy, leading to economic harm. This often involves professionals, like real estate agents or financial advisors, who fail to verify the truth of their statements. The misled party relies on the inaccurate information to make decisions, which can result in financial loss. To prove negligent misrepresentation, the affected party must demonstrate that the provider had a duty to be accurate, breached that duty, and caused damages as a result.