Is there a duty of care for misrepresentation made during pre-contractual negotiations?

Alberta, Canada


The following excerpt is from Unryn v. Melcor Developments Ltd., 1994 CanLII 9023 (AB QB):

Iacobucci J. in Queen v. Cognos Inc. (supra) stated at p. 654: A duty of care with respect to representations made during pre-contractual negotiations is over and above a duty to be honest in making those representations. It requires not just that the representor be truthful and honest in his or her representations. It also requires that the representor exercise such reasonable care as the circumstances require to ensure that the representations made are accurate and not misleading.

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