Tort and breach of contract work almost in the same way, and both are different in some cases. As a result of it, most people cannot use them in the right way. Even they fall into unexpected problems because of their exact use of them. So, before you take the initiative to use either tort or breach of contract, you should know the difference between tort and breach of contract.
What is a Contract?
A contract comes with an agreement between two or more persons. The contract is used to perform specific acts. It is the most important thing that the contracting party should have something valuable of consideration. All contracts are not valid contracts, and, in that case, when a contract comes under essential considerations, then it would be a valid contract. To make a valid contract between the parties, there must be a mutual agreement. So before you come under a contract, you should know the essential things of a valid contract.
Contracts must be a set of promises which is lawfully between parties. They have the liberty to form a contract according to their interest. But the contracts are for legal purposes. It should not be used for illegal or unlawful purposes.
When parties want to make a contract, there must be two parties, and out of the parties, one is a maker, and another accepts the offer. The contract is done with respect to the autonomous.
Essentials of a valid contract
- Contract should go for legal purposes.
- There must be an agreement made between two or more persons.
- Offer must come as a valid one
- The offer must be legally accepted
- Should be an exchange of something instead of a return
- The contract should come in written form
- The parties should come into legal consideration
- Minors and mentaldisturbance should not be barred
- Fraud should not make an entrance
Example of a contract to be sure about the difference between tort and breach of contract
An Offer – I will give you Rs 2000 for 20000 cakes
Acceptance –I offer 20000 cakes for 20000
Types of Contract
- Unilateral Contract
- Bilateral Contract
- Express Contract
Types of Contracts based on validity
Valid contract – It is a lawful contract that provides the satisfaction of all the essentials.
Void Contract – It is a contract that ceases to be enforceable under the law, and it becomes void, the contract becomes enforceable.
Example – A agrees with B to pay a sum of Rs 5000 for 5 years in such a condition that B will pay Rs 10000. If A dies due to natural causes in 5 years, the contract does not go as valid because of non-enforceability terms.
Voidable Contract – It is designed under section 2(i). It goes in such a way that tells ‘An agreement enforced by the law between two or more parties, but it not optionable upon other or others is called a voidable contract.
Illegal Contract – When a contract goes oppositely to public policy, it becomes an illegal one.
Example – If A agrees to murder C.
To know the difference between tort and breach of contract, you have to go through the details of tort.
Definition of Tort?
“Tort” comes from the Latin term ‘torturn, and it means not straight or lawful. The word was introduced by the English law by Norman Jurists. This particular word was first introduced for certain special wrongs under the system of English courts, and it has been used for all civil wrongs.
Characteristics of Tort
- It is simply a civil wrong but not a breach of contract, even a breach of crime.
- Infringement of a right in rem but not a right in personal.
- Against the entire world, a right in rem is available.
It is fixed by the law – Rights in tort are not based on fixed law, and even it should not be on the basis of parties.
Remedy –Tort provides a remedy in the term of coverage of the damage, and it will be given in the form of restitution, injunction, and ejectment of trespass.
Difference between tort and breach of contract
|Breach of Contact
|Tort becomes a civil wrong of which remedy goes as an action for damages.
|Beach of the contract is a breaking of promise in he has to for an agreement via a contract.
|Damages in the tort become unliquidated.
|Motive will be immaterial.
|Duty is bound for the persons
|Duty is bound for a specific person.
|Nature comes in damage compensatory.
|Nature comes in damages compensatory and exemplary.
|It is a violation of legal rights.
|It is an infringement
Apart from the details mentioned above, there must be more differences between tort and breach of contract.
Meaning – Tort becomes a collection of legal remedies that provide the aggrieved party just to cover injuries, losses, and damages. A contract is a sure promise or set of promises and under the law, it will, it will enforce.
Nature of the right contravened–The tort goes under consideration of violation of a legal right, and it runs as an infringement of a legal right. But the contract goes as an infringement of the legal right.
Privity – Here, the tort does not come to subsist, and it is not significant as the harm, but the contract goes for subsist.
Right and obligation – Here, tort does not have any obligation, and the parties will have rights according to the law. But in a contract, the rights are created by the parties, and obligation is created under the agreements among the parties.
Duty – In Tort, Law tells the duties of the persons and the tort parties that everybody is bound by them under the legal step of the law. In contracts, parties are liable to the parties about the contract, and the parties come to decide about the compensation.
Minors – In tort, minors may be sued ad responsible to pay the damages, and the damages will be indemnified, but in contracts, minors will have limited liability.
Period of limitation –Under torts, the period of limitation comes to be scamper at the time of harm caused by the party. But in contracts, the period of limitation comes to be scampered when a contract is breached.
Damages availed – In torts, the damages under the court can be unliquidated, and they can be actual damages. But in contracts, they have exemplary damages. Here the measure for the compensation is based on the damages.
Motive – In torts, motive becomes a significant factor, and the court takes the motive for the person under consideration. In the contracts, the motive factor is irrelevant.
Limitation Statute – In torts and contracts, people have unique circumstances of the statute for the limitation.
Similarly, there must be a similarity between tort and breach of contract
Both are considered to be civil wrongs.
In both of the systems, the plaintiff has the responsibility just to prove the cases of the probabilities.
The damage is measured through the remoteness of tort as well as breach of contract.
Though tort and breach of contracts are two separate terms but according to the law, both are civil wrongs. Both the contracts and torts are different things, but in the rules of law, both are civil wrongs. Knowing the difference between tort and breach of contract is undoubtedly essential for our lives. By the law, the court comes to help the affected people separately, knowing the difference between tort and breach of contract.