Can a party be held liable for negligent misrepresentation in the context of a contract?

Alberta, Canada


The following excerpt is from Lastiwka v. OCOM Systems Ltd., 2000 ABQB 316 (CanLII):

Regarding negligent misrepresentation, the law is clear that a party may be responsible for damages in tort if a misrepresentation is made in pre-contractual negotiations which induces the plaintiff to enter into the contract. The requirements to establish liability in tort have been stated in Queen v. Cognos Inc., 1993 CanLII 146 (SCC), [1993] 1 S.C.R 87 at 110 as being: ...(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 the 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.

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