Examples Of Negligent Misstatement
Introduction
Negligent misstatement is breach of duty of care between the professionals and their clients. It relates to a representation of fact which carelessly made and relied by another party which cause them in disadvantageous circumstance. The duty of care is a common law arrangement where the client expects a professional level which held by those in the profession. Negligent misstatement made by a professional is possible to cause economic loss to his/her clients. This is provided however that a special relationship or a sufficient proximity exists between the parties (“Negligent Misstatement – Law”, n.d.).
In addition, there are a few elements required to prove professional negligence. First, the negligence is committed in the ordinary course of business or professional affairs. Second, a person act as professional’s client or a third party which seeks information, advice or other professional services from another. Third, the professional is not under a contractual or fiduciary obligation to give the information or advice. Forth, the information or advice given in circumstances which a reasonable personnel was being trusted and skill or judgment was being relied on. Lastly, the professional chooses to give that information or advice.
Special relationship doctrine is a legal principle stated that the third party are liable for the harm inflicted on the individual and the third party assumed control over the individual by triggering an affirmative duty in order to
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