Differences between Tort and Breach of Contract

TORT IS A CIVIL WRONG

We may define tort as a civil wrong which is redressible by an action for unliquidated damages and which is other than a mere breach of contract or breach of trust.

Tort belongs to the category of civil wrongs. The basic nature of civil wrong is different from a criminal wrong. In the case of a civil wrong, the injured party i.e., the plaintiff, institutes civil proceedings against the wrongdoer i.e., defendant.

In such a case, the main remedy is damages. The plaintiff is compensated by the defendant for the injury caused to him by the defendant.

Every tort is a civil wrong. But every civil wrong is not a tort. This is because breach of contract and breach of trust are two civil wrongs but not included in tort.

DIFFERENCES BETWEEN TORT AND BREACH OF CONTRACT

1. IN TERMS OF DUTY- In tort, the duty of every individual is guided by the law of the territory and hence equal for all. On the other hand, in contract, the duty is typically fixed by the contracting parties with mutual consent and agreement.

2. IN TERMS OF NATURE OF DUTY- In tort, the duty of an individual is directed towards the society at a large; everyone is bound to protect and respect everyone’s right i.e. duty in general. On the other hand, in contract, duty is directed towards only the contracting party or parties.

3. VIOLATION OF RIGHT- Tort normally occurs when the right, which is available for all in general (right in rem) gets violated by someone without any contract as such. On the other hand, in contract, breach of duty occurs when the contracting party does not perform the task agreed upon or performs such a task, which is prohibited in the contract.

4. IN TERMS OF APPREHENSION- Tort is largely concerned about losses. On the other hand, a contract is largely concerned with agreement and commitment.

5. REQUIREMENT OF DOCTRINE OF PRIVITY- In tort, privity is not required. But in case of breach of contract, privity between the contracting parties essentially need to be proved.

NOTE: Privity is a relationship between parties based on blood, contract, lease, or other services.

6. LAWSUIT- In tort, even a third party can sue. But in contract, only contracting parties can file a lawsuit (in case of breach of contract). However, there are some exceptions in contract as well where a third party can file a lawsuit.

7. DAMAGES AND FINE- In tort, damages are decided according to the circumstance, which normally varies from one case to another. Hence damages may be nominal or may exemplary. But in case of breach of contract, damages are normally awarded as the compensation for the pecuniary loss that the plaintiff (the contracting party who suffered) suffered.

8. VALUE OF DAMAGES- In tort, the victim is normally compensated by the unliquidated damages, as the calculation of the damages is not feasible. But in case of breach of contract, damages are liquidated, as per the terms and conditions of the contract and respective loss.

9. VALIDITY- Tort is applicable in all the cases and circumstances even in the case of a minor. So a minor has the right to claim the damages in case of tort. But a contract is not valid in the case of a minor, as the contract with the minor is void ab initio; hence there is no scope of compensation in such a case.