23. An innocent misrepresentation occurs when a party makes an innocent but untrue material statement of fact that the other party relies on as a reason to enter into the contract (see O’Shaughnessy at paragraph 106). A negligent misrepresentation is where one party fails to exercise reasonable care in making a representation that is untrue, inaccurate, or misleading, and the other party has reasonably relied on the negligent misrepresentation to enter into the contract to their detriment (see Queen v. Cognos Inc., 1993 CanLII 146 (SCC), [1993] 1 SCR 87 at paragraph 110).
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