Define "negligent misrepresentation".

Study for the Queensland Deputy Law Exam. Utilize flashcards and multiple choice questions with hints and explanations. Prepare effectively and confidently!

Negligent misrepresentation refers to a situation where an individual provides false information without exercising reasonable care in ensuring the accuracy of that information, which ultimately leads to financial loss or damages for another party. This concept emphasizes the lack of intent to deceive, distinguishing it from fraudulent misrepresentation. In this definition, the focus is on carelessness or negligence rather than an outright lie or intentional misinformation.

In the case of option B, the phrasing "carelessly giving inaccurate information leading to loss" captures the essence of negligent misrepresentation perfectly. It acknowledges that the information was not checked properly, which is what constitutes the negligence component, while also recognizing that there were consequences as a result of that carelessness.

Other options misinterpret the nature of negligent misrepresentation. For instance, providing incorrect information intending to deceive suggests an element of intention to mislead, which shifts the definition closer to fraudulent misrepresentation. Similarly, providing intentional misinformation explicitly points to a deliberate act, contrasting sharply with the notion of negligence. Lastly, misleading clients about professional practices could happen without the component of carelessness or negligence being present, which fails to align with the definition of negligent misrepresentation. Hence, option B stands out as the only choice that accurately encapsulates this legal principle.

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