Is Breach of Contract a Tort? Here’s What You Should Know
Sometimes, a person might confuse tort law with contract law since the two have some striking similarities. But is a breach of contract a tort? Will the parties involved handle court proceedings similarly?
Anthony Law Group’s Phoenix breach of contract lawyer explores how the tort claims diverge from breach of contract cases. Learn which one applies to your court case below.
Understanding Contract Law
A contract binds two or more parties to an agreement of what all parties involved can or cannot do. Many contracts cover services, products, and actions within a professional setting. The contract is a legally binding agreement with listed contractual obligations that take numerous forms.
Some parties might agree to an oral contract, while others prefer a written contract. Contract law prevents a breach of contract. A breached contract involves one of the parties passively failing or actively neglecting to hold up their end of the bargain.
After the breaching party neglects the duties outlined in the original contract, the non-breaching party can seek damages, including:
- Liquidated damages or a calculated sum equivalent to the damages done.
- Nominal damages or a small lump sum.
- Restitution or full compensation for all damage costs.
What Is Tort Law?
Tort law doesn’t require a contract between two parties. However, it assumes that each individual involved should follow their social or professional duty established to prevent or minimize harm to another person.
In other words, you are accountable for your actions toward the other party. If you commit a tortious act, you might be held responsible for economic losses suffered and injuries caused.
A tort case might define the duties breached as harmful actions or inactions. Common law generally determines whether these actions or inactions count as a tort.
Where a Contract and Tort Claim Meet and Differ
Before you file a legal claim, you must determine whether your case is a breach of contract or tort case. Sometimes, the injured party might have a case that falls under both tort law and contract law. For example, negligent misrepresentation may cause the two to intersect when it results in personal injury claims.
We will dive deeper into the details below.
Is a Breach of Contract a Tort?
Is a breach of contract a tort? A breach of contract is not technically a tort. The essential difference between the two involves the following defining characteristics:
- Type of agreement: Your duties under tort law involve taking reasonable precautions to prevent harm to others, whereas a contract law case only examines personal or economic loss caused by a breach of contract.
- Unsatisfied duties: When a court handles a claim regarding a breach of contract, its main objective is to help the plaintiff recover personal or economic loss resulting from the breach. Tort cases may go beyond economic loss and include pain and suffering.
- Proof of harm: A lawyer uses evidence that strictly supports the alleged breach of contract. Tort cases can be harder to prove since they go beyond recorded contractual obligations.
- Privity scope: Tort law may cover more than one party. It can extend to third parties who incurred additional harm. However, a contract case only examines the parties explicitly outlined within the agreement.
When Can an Injured Party File a Tort Claim?
Let’s say you have a neighbor who breeds large dogs. He doesn’t keep them adequately contained on his property, so you approach him about it. He continues allowing his dogs to roam despite your warnings and requests.
As a result, the dogs enter your property, scratch your vehicle, and pull the siding off of your house with their teeth. This is a negligent tort for which you can pursue a court case.
If, however, your neighbor lets the dogs loose in retaliation against your complaint, he committed intentional torts. You could pursue material and punitive damages to cover repair costs and punish your neighbor.
When Does a Contract Breach Come Into Play?
Now, what if you want to purchase a puppy from your neighbor’s recent litter of pure-bred German Shepherd puppies? You both draw up a contract that:
- Declares you will pay half the price now and the other half after you receive the puppy
- Confirms the puppy’s breed
- Verifies your neighbor will give you the puppy at 12 weeks old
Here, the contract exists to secure your neighbor’s compensation for providing a specific dog breed. You file a breach of contract claim because he doesn’t deliver the puppy until a month after the agreed-upon date. The puppy also looks like a mutt, and genetics testing confirms this.
Therefore, your neighbor has committed a brech of contract and also possibly an intentional fraud.
Where a Contract Lawsuit and Tort Claim Might Meet
There are some circumstances where tort law and contract law meet. While tort and contract obligations might differ in what each claim is based on, they still establish a code of conduct to which each person must adhere. In other words, all parties owe each other reasonable care to follow their contractual obligations and/or maintain a safe environment.
Intentional tort claims and breach of contract cases intersect in that one of the two parties failed to act in the best interest of the other individual. That breach resulted in some type of loss or harm backed by a trail of evidence.
Handling Breach of Contract and Tort Cases
What should you do when faced with a breached contract or a tort? The process for both typically involves:
- Closely examining your contract or local laws meant to protect you.
- Gathering evidence and documenting the damages for an eventual court case.
- Consulting an attorney who practices tort or breach of contract law.
- Undergoing legal mediation to settle.
If mediation sessions are unsatisfactory, your attorney will pursue litigation.
Consult Anthony Law Group’s Civil Law Attorney About Your Court Case
Is a breach of contract a tort? While the two share similarities and may intersect, they are ultimately different.
If you have a tort law or breach of contract case, call Anthony Law Group at 602-362-2396. Our attorney will consult you about breach of contract law in Phoenix, Arizona.