Negligent Misrepresentation: When Careless Advice Costs You Money

Negligent misrepresentation is a claim for losses caused by a careless, untrue statement that you reasonably relied on. It doesn't require proof that the person lied deliberately.

The five elements

In Queen v. Cognos (1993), the Supreme Court of Canada set out the test:

1. A duty of care based on a special relationship between the parties.
2. The statement was untrue, inaccurate or misleading.
3. The person making it acted negligently.
4. You relied on it, and your reliance was reasonable.
5. The reliance caused you damage.

Examples

• A seller's agent says a basement has never leaked.
• An employer misdescribes a job during hiring, and you leave a secure position.
• A professional gives careless advice you were meant to rely on.

Defences

• The statement was an opinion, not a fact.
• A written contract clause says no statements outside the contract were relied on.
• Your reliance wasn't reasonable, for example because you knew the truth.

Deadlines

Most claims must be started within two years of when you discovered the problem.

Sources

• Queen v. Cognos Inc., 1993 CanLII 146 (SCC)
• Limitations Act, 2002

Read next: Someone Won't Return Your Property: Conversion and Detinue

General Ontario legal information, not legal advice for your matter, and reading it does not create a retainer. Sources checked 16 October 2026: check the current law, forms and dates before you act.

Photos from Unsplash: A blue circular rubber stamp with text and a handwritten signature below it · A man in a blue suit writing at a desk with a woman standing behind.

This article is general information for people in Ontario, not legal advice. Rules, forms and deadlines change, and every situation is different. Check the current rule or speak to a licensed legal professional before you act.