A. Definition

• Library: Elements of Civil Causes of Action (SCBar) (2021 Ed.)

A. Definition

Negligent misrepresentation has been described as an "emerging and developing field of law."¹ Recovery in a negligent misrepresentation action is "based upon negligent conduct and predicated upon a negligently made false statement where a party suffers either injury or loss as a consequence of relying upon the misrepresentation"² inducing him or her to enter a contract or business transaction.³ While it is an action in negligence, not fraud and deceit, reliance on the misrepresentation, as in fraud, is an essential element of the tort.⁴ Negligent misrepresentation is distinguishable from fraud in that to prove the latter the plaintiff must show the defendant conveyed a "known falsity."⁵

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Notes:

^[1] Gruber v. Santee Frozen Foods, Inc., 309 S.C. 13, 419 S.E.2d 795 (Ct. App. 1992).

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