What is Negligent Misrepresentation?

Misrepresentation in general is a legal term that means "a false statement of fact that has the effect of inducing someone into a contract." For example, telling someone a stereo is "practically new" so that they buy it, when it is in fact 5 years old and heavily used. Negligent misrepresentation is one of the three recognized varieties of misrepresentations in contract law such as innocent and fraudulent misrepresentation.