In a claim for negligent misrepresentation, what does the defendant need to prove regarding the information provided?

In a claim for negligent misrepresentation, the defendant must demonstrate that the information provided was indeed false and part of a business transaction. This requirement centers around the integrity of the information used to influence the plaintiff's decision-making in a commercial context.

Negligent misrepresentation occurs when one party provides false information in a business setting without exercising the necessary care to ensure its accuracy, leading the other party to suffer damages as a result of relying on that misinformation. As such, proving that the information was false is critical because it establishes that the plaintiff relied on a misleading statement which ultimately led to their losses.

In this area of law, the emphasis is on the responsibility incumbent upon the defendant to provide accurate information, particularly when operating in a professional or commercial capacity. This situation underscores the principle that in transactions where one party seeks to induce reliance from another through statements or information, they must ensure that what they communicate is true and not misleading. Therefore, the premise of falsity within a business context is foundational to a successful negligent misrepresentation claim.