Negligent Misrepresentation in Pre-Contractual Negotiations Explained

The Supreme Court considered a claim based on negligent misrepresentation made in pre-contractual negotiations. The key issues were whether the defendant had a continuing responsibility for the negligent misrepresentation until the contract was concluded, and whether the defendant was liable for the losses suffered by the contracting party as a result of a negligent misrepresentation made earlier to the party’s agent. It was decided that a negligent misrepresentation is capable of having a continuing effect up until the time when the contract is concluded, where the person by whom the representation is made, or to whom it is addressed, becomes the agent of the person by whom the contract is concluded. Cramaso LLP v Viscount Reidhaven’s Trustees [2014] UKSC 9