The leading decision with respect to the tort of misrepresentation is Queen v. Cognos Inc., 1993 CanLII 146 (SCC), [1993] 1 S.C.R. 87. The court set out five general requirements for a successful claim: 1) There must be a duty of care based on a “special relationship” between the representor and the representee; 2) The representation in question must be untrue, inaccurate, or misleading; 3) The representor must have acted negligently in making the representation; 4) The representee must have relied, in a reasonable manner, on the negligent misrepresentation; 5) The reliance must have been detrimental to the representee in the sense that damage resulted. The court held that an action for negligent misrepresentation may lie even though the parties to the action are in a contractual relationship. The fact that the negligent misrepresentations are made in a pre-contractual setting does not bar an action in tort for damages caused by the misrepresentations, even if the parties subsequently enter into a contract. It is not necessary to establish that the representor did not believe in what he was representing. The standard of care is an objective one: there is a duty to exercise such reasonable care as the circumstances require to ensure that representations made are accurate and not misleading.
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