There are two different categories of legal responsibility under which someone might be held liable for damages: tort and contractual. Contractual liability typically develops when one party doesn't fulfill the responsibilities it committed to when the contract was signed, which causes injury or damages (Murphy,2020). The party who feels wounded or harmed will file a lawsuit for the damages specified in the contract.

An occurrence where ABC Company, a building owner, employs XYZ Builders to renovate an office building serves as an illustration of contractual liability. The owner of the ABC building should sign an indemnity clause stipulating that if any hurt or damage is inflicted on civilians, the XYZ building business shall assume full responsibility and pay damages. This analogy demonstrates the requirement for written documentation of the liable parties for reparation to take place.

On the other hand, tort liability is a breach of duty in which one party owes the other. This breach can be considered intentional or unintentional, and it causes harm to the injured party. The injured party will then sue for the damages received and demand compensation. According to Murphy (2020), the main difference is that contractual liability is based on a set contract, while tort liability is more subjective and depends on the standard requirements of the defendant to the plaintiff.

Reference

Murphy, J. (2020). Contractual Liability vs. Tort Liability: What's the Difference? The National Law Review. Retrieved from https://www.natlawreview.com/article/contractual-liability-vs-tort-liability-what-s-difference

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