... and the statement must be `material', that is, one that would induce the reasonable man. Joe relied upon the statement which was given in the auctioneers' catalogue stating that the building is "of sound construction with many desirable period features". Having been intrigued by the details provided, Joe decided to visit the property two weeks prior to the auction and was satisfied with the property this led to the purchase of the property. The negligent misrepresentation was relied upon by Joe, as the positive description provided by the auctioneers induced Joe to enter into the contract and its terms and conditions. Therefore the property was purchased as he relied on the auctioneers' statement. It's important to distinguish whether negligent misrepresentation has occurred at common law or statutory. If it has been achieved through common law then there needs to be evidence of a "special relationship" which can only rise in ...

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