It is now accepted that there is a third category of misrepresentation after fraudulent, and innocent misrepresentations called negligent misrepresentation. An innocent party induced to enter into a contract by reason of an innocent but negligent misrepresentation can sue the representor in tort for damages for negligence even when the latter affirms the contract. The alternative and now, largely redundant view is that the disagreement is contractual in nature and therefore, should be remedied according to the law of contract.

The professional, any professional such as a valuer and real estate agent who holds him/herself out as an expert in a certain matter are subject to a duty of care in the information, reports and advice given to his/her clients. This area of negligence is probably the most important tort affecting the property professional as it covers "economic loss".


casual link