Professional Documents
Culture Documents
Q1.
Q. 1 Distinguish tort from crime and contract?
Answer:
Tort:
Tort is “any wrongful act that leads to legal liability”.
A tort is considered civil wrongdoing that is expected to or believed to have caused the
claimant harm or loss. In the end, the act results in legal liabilities levelled against the
wrongdoer.
Tort is doing something wrong hampering individual parties. In legal terms, a tort happens
when negligence directly damages a person or his/her property. There are different types of
torts, but all of them result in injury to a private person or property.
Negligence is the most common reason for tort. When a person unintentionally harms
someone then the injured party can sue the defendant for his act. A strict liability tort
becomes an issue if a private party is injured through a faulty product.
What is Crime:
crime is nothing but doing something wrong. Specifically, in this case, the impact is on
society in general. There are special cases or acts which are a crime under the state legal
system. In case, a person does any of the act, the law will take necessary decisions of
punishment in the court.
Specifically, the proceeding takes place in the criminal court of law. Crimes which go against
laws are already set for the protection of society.
Meaning of Contract:
A contract means a promise or set of promises that the law can or will enforce if any
eventuality arises while tort means a collection of legal remedies that entitle an affected
party to recover from losses, injuries, or damages.
Answer:
Tort:
Tort is doing something wrong hampering individual parties. In legal terms, a tort happens
when negligence directly damages a person or his/her property. There are different types of
torts, but all of them result in injury to a private person or property.
“all injuries done to another person are torts unless there is some justification recognised by
law”. A tort has come to mean an act which is wrong. Law of Torts allows the plaintiff to
claim unliquidated damages for a legal civil wrong. However, tort law does not allow the
plaintiff to claim damages for any and every wrong. Thus, it is important to understand what
ingredients constitute a tortious liability, so to allow an affected party to claim damages.
Illustration A: ‘X’ publishes a defamatory statement against ‘Y’. The same would lead to the
Tortious wrong of Defamation on X’s part as the law forbids the publication of defamatory
statements against a person.
Illustration B: ‘X’ fails to set up proper fencing surrounding his garden which has poisonous
trees to warn people to stay away from it. A child dies as a consequence of eating fruit from
one of the poisonous trees from X’s garden.
Here, ‘X’ failed to perform his reasonable duty of care towards the people which amounts to
omission. It’ll lead to a Tort.
Legal Injury:
To prove that the wrongful act or omission of the defendant is a Tort, the plaintiff must
show that such act or omission caused an injury to him. An injury here means violation of a
legal right vested in the plaintiff and recognized by the law of the land. The legal maxims
‘Injuria sine Damno’ and ‘Damnum sine Injuria’ encapsulate the damage and injury part.
The first maxim, Injuria sine Damno means Injury or infringement of a legal right without
any actual Damage i.e. substantial loss suffered by the plaintiff. Mere violation of a legal
right or proof of a legal injury is enough to constitute a Tort. The reader can deduce the
maxim further from the case of Ashby v. White.[6]
The second maxim, Damnum sine Injuria means damage to the plaintiff in absence of a legal
injury or violation of any legal right. A case for Tort cannot be made up in absence of a legal
injury. The Gloucester Grammar School case[7] can be referred to understand the maxim to
its bottom.
Legal Remedy:
As the last condition to constitute a Tort, the unlawful act or omission of the defendant
must fall under a category of unlawful acts which have a civil action for damages as their
remedy. The law of torts bases itself on the maxim, ‘Ubi jus ibi remedium’ which means
‘where there’s a right, there’s a remedy. The remedy required to constitute a Tort can be
action for damages, injunctions, restitution actions, or equitable remedies (specific
performance).
The court applies certain tests such as the test of foreseeability, the test of directness, etc.
before determining the remedies to be awarded in a case. The nature of the damages is
unliquidated.
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Q3.
Q. 3 What are liquidated and unliquidated damages?
Answer:
damages are a remedy in the form of a monetary award to be paid to claimant as
compensation for loss or injury. The damage must involve damages to property, or mental
or physical injury etc. A court usually gives the amount that will help to restore the injured
party to the economic position they expected from the performance of the promise or
promises on a breach of contract by a defendant. Liquidated damages are meant as a fair
representation of losses in a situation where actual damages are difficult to ascertain.
Unliquidated damages are a type of compensation that is considered at large which means
that the amount is not stated when a contract is established, instead these damages are
determined by a judge or jury in a court.
Types of Damages
General and Special Damages –
Any damage that emerges in the natural course of events is known as general damages
while damages that emerge under any circumstance and were already expected is called
special damages.
Nominal Damages
These are damages that are awarded to the plaintiff in cases where the court decides that
the plaintiff suffered a legal wrong but no real financial loss as such.
Punitive damages
These damages are not fixed by law, the judge and jury may award at its discretion
whatever sum is believed necessary to redress the wrong, also a Jude can remit these
damages if they consider it to be excessive.
> The contract should be valid which means there should be offer, acceptance, capacity to
contract etc.
>A plaintiff who claims damage has to prove to the court that the defendant has breached
the contract.
Liquidated Damages
As per black law, before entering into any contract the parties decide an amount of money
which has to be paid by the one who performs breach of contract this is termed as
liquidated damage.
In India liquidated damages is covered under section 73and 74 of the Indian Contract Act.
Section 73 – This section deals with compensation for loss or damage that is caused by
breach of contract. When any contract is broken the party, who is responsible for it has to
pay certain compensation to the other party. Such kind of compensation is however not to
be given for any remote and indirect loss or damage sustained by reason of breach.
Example – Suppose B get into a contract for selling and delivering 10 kg of rice to C however
soon he breaks his promise, due to which now C is entitled to compensation from B for the
loss he faced.
Section 74 – According to this section if a contract is broken and a sum is mentioned in the
contract for any breach that might be caused later then the party is entitled to it whether or
not actual damages are proved.
Example – Suppose A borrows Rs 500 from B and gives him a bond for rupees 600 which will
be payable through instalments now if he fails to do it, he has to pay the whole money
(rupees 500)that is due to B.
Causal link – There must be a link between the breach that is committed and the loss
suffered for a claim of damage, however if this is absent then compensation cannot be
awarded.
Proof of damage – There should be a proof of damage or loss or injury present otherwise
the compensation cannot be awarded for claiming of liquidated damages.
Unliquidated Damages
Damages that are claimed for unforeseeable loss are known as unliquidated damages,
however determining the exact amount for compensation is a bit difficult in this case since
the amount is unliquidated. For awarding these damages the court takes a compensatory
approach such as it tries to restore the loss sustained by the plaintiff, help the plaintiff in
getting back to its previous position, avoid penalization of the defendant in any manner.
The main motive behind these damages is that it helps pries suffering from a breach of
contract to demand for damages for unforeseen losses, however certain requirements are
to be fulfilled without which compensation cannot be provided. It is extremely necessary
for including a provision for unliquidated damages in a contract as it helps the parties to
recover those losses which are not possible to estimate , also the problem with this type of
unliquidated damage is that the party claiming it has to prove that the loss is due to the
breach of contract .
However, if a party was aware that there might be certain unforeseen events which may
cause problem in performance of the contract and still did not take any step for stopping it
then damages cannot be awarded.
Case laws
Fateh Chand v. Bal Kishan Das
In this case provision was eliminated under English law which was in relation of the
difference between payment of liquidated damages and stipulation penalty. The Supreme
Court has held that the effected party was entitled to a certain compensation which should
not exceed a particular sum of penalty or re discussed amount which had to be paid after
breach of contract. The court also mentioned that the usage of all these provisions was not
particularly confined to some cases in which the effected party comes to the court for
seeking relief.
In the following case section 74 was interpreted on the basis of either predetermined
agreement compensation or penalty.
In this particular Supreme Court had held that in case of any sort of damage with respect to
section 73 and 74 and has to be read together and the damages which are liquidated I
nature has to be granted in those cases whereby it is very much difficult to prove the exact
loss or damage which has been incurred as per the fact that it should be a type of
reasonable compensation but in cases of deciding compensation the terms and conditions
should be taken into proper consideration .
In this case, the court had given the judgement in favor of the plaintiffs with reference to
the right of unliquidated damages that arose upon a certain breach of contract between the
plaintiffs and the defendant. The damages which were claimed by the plaintiffs were
actually based on a rule that was ordinary in nature i.e. the difference between ordinary
price and the market price during the time of contract made. The problem which arose over
here was that the defendants did not make timely appearance with respect to the provision
that was clearly mentioned in the contract and duly signed by them.
Conclusion
In order to conclude, I would like to say that there are certain advantages of both these
damages. In a provision for unliquidated damages, the contract made will mostly prove to
be a bigger advantage. The particular contract will help in recovering the losses by the client
which were earlier a breach in the contract, unforeseen or even really very tough to
estimate about it. The fact over here is that it originally results in contractor to have a
liability that is fully unknown. Adding to this, the client has the obligation so as to remove
his or her actual loss during the breach.
When any damage is caused by the honest faith for abbreviating the immense amount of
the damage.
Any damage which arose due to the statement intending to derogate by the honour through
the direction.
Illustration
*Any action conducted by A which leads to damage B without infringing the B’s personal
legal privileges, therefore no action will be prosecutable.
Corporation of Bradford was supplying water from its well. Defendant was having
adjacent land to the corporation land wherein there was well.
Defendant was willing to sell his land. He approached the mayor of corporation.
Negotiations failed. Defendant dug well in his own land .thereby cutting the underground
supply of water of corporation well this has caused a loss to corporation because there was
no adequate supply of water to the people of corporation. Plaintiff sued Deft for damages
for malice.
Held -
Deft.is not liable, because defendant's act is not wrongful as not violated legal right or
plaintiff. There is factual malice, ill will digging well in his own land does not amount to tort.
Fact -
Plaintiff was running a mill on his own land, and for this purpose he was using the water
of the stream for a long time. The Deft dug well in his own land and thereby cut off the
underground water supply of stream. Through percolation the water gathered in the well of
deft. The quantity of water of stream was reduced and the mill was closed for non
availability of water. Plaintiff sued deft for damage.
Held -
Deft. Not liable, because of principle of Damnum sine injuria. No violation of legal right,
though actual loss in money.
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