Contractual and Non Contractual Liability

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Contractual and Non-contractual Liability I. Contract A contract is an agreement having a lawful object entered into voluntarily by two or more parties, each of whom intends to create one or more legal obligations between them. The elements of a contract are "offer" and "acceptance" by "competent persons" having legal capacity who exchange "consideration" to create "mutuality of obligation." Contracts may be bilateral or unilateral. A bilateral contract is an agreement in which each of the parties to the contract makes a promise or set of promises to each other. For example, in a contract for the sale of a home, the buyer promises to pay the seller $200,000 in exchange for the seller 's promise to deliver title to the property.…show more content…
Consider the following simple example. I agree to paint your house for $1,000 and collect $500 prior to the job. After I accept the $500, I obtain a more lucrative offer and never show up to paint your house. You can go to court and claim the $500 you paid me, as I have breached the contract. Your claim is a contractual liability claim. Contractual liability can take many forms, but is basically holds you accountable for damages that are stated in the contract. Another example can be a publishing contract. If you are found guilty of plagiarism, the publisher is not accountable for the act. It is your contractual liability, to release the publisher from fault, and take it yourself. In a nutshell, contractual liability, is anything that you agree to in the terms set forth in a contract. Before entering in to any contract, if you do not understand the terms, consult with an attorney. III. Non-contractual liability The term non-contractual liability can be defined as tort liability. Tort liability is legal obligation of one party to a victim as a results of a civil wrong or injury. This action requires some form of remedy from a court system. A tort liability arises because of a combination of directly violating a person 's rights and the transgression of a public obligation causing damage or a private wrongdoing. Evidence must be evaluated in a court hearing to identify who the tortfeasor/liable party is in the case. Some torts are also
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