Contract Glossary
Tort
Definition
A wrongful act, other than a breach of contract, that causes harm to someone and creates a legal right to sue for compensation. Torts include negligence, fraud, defamation, trespass, and intentional interference with business relationships. While contracts deal with broken promises, tort law deals with broken duties that exist independent of any agreement.
In Practice
A software consultant's negligent code causes a client's system to crash, destroying customer data. The client might have two claims: a breach of contract claim (the consultant didn't deliver working software as promised) and a tort claim (the consultant's negligence caused harm beyond the contract scope). This matters because contract damages are typically limited to what the parties agreed, while tort damages can include broader losses, and some contracts try to waive tort claims entirely through limitation of liability clauses.
Common in these contract types
Related contract clauses
Frequently asked questions
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