For negligent misrepresentation, the plaintiff must show which of the following about reliance?

• A. Reasonable reliance upon the advice
• B. Unreasonable reliance
• C. No reliance required
• D. Reliance only if there is a contract

Answer: (A)

In negligent misrepresentation, the reliance element requires that the plaintiff reasonably relied on the misstatement. That means the plaintiff must have relied on the false statement in a way that a reasonable person would under the circumstances, and this reliance must be linked to the loss suffered. It’s not enough to simply hear the statement or have belief; the action taken must be justifiable based on that information. So if a buyer reasonably relies on advice or information provided by a licensed professional and suffers damages as a result, liability can attach. On the other hand, if the reliance is shown to be unreasonable, or there was no reliance at all, the claim fails. And the existence of a contract is not a prerequisite for negligent misrepresentation.