What is the test for determining liability for misrepresentation?

Ontario, Canada


The following excerpt is from Drolet v ReMax Riverview Realty Ltd., 2016 CanLII 47265 (ON SCSM):

27. The general requirements for imposing liability based on negligent misrepresentation are set out in the Queen v. Cognos [1993] 2 S.C.R. 206 as follows: “… (1) there must be a duty of care based on a “special relationship” between the representor and the representee; (2) the representation in question must be untrue, inaccurate, or misleading; (3) the representor must have acted negligently in making said representation; (4) the representee must have relied, in a reasonable manner, on said negligent misrepresentation; and (5) the reliance must have been detrimental to the representee in the sense that damages resulted.” p. 110

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