What constitutes negligent misrepresentation and fraudulent misrepresentation?

British Columbia, Canada


The following excerpt is from Whelan v. Labrecque, 2020 BCCRT 455 (CanLII):

20. Although I am not bound by it, I agree with the decision of this tribunal in Caviglia v. Jonathan, 2020 BCCRT 426 that negligent misrepresentation occurs when a seller fails to exercise reasonable care to ensure representations are accurate and not misleading. I also agree that fraudulent misrepresentation occurs when a seller makes a false representation of fact and the seller knew it was false or recklessly made it without knowing it was true or false. In either case, the misrepresentation must reasonably induce the purchaser to buy the item.

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