Relationship To Contract Law
Tort is sometimes viewed as the causes of action which are not defined in other areas such as contract or fiduciary law. However, tort and contract law are similar in that both involve a breach of duties, and in modern law these duties have blurred and it may not be clear whether an action "sounds in tort or contract"; if both apply and different standards apply for each (such as a statute of limitations), courts will determine which is the "gravamen" (the most applicable). Circumstances such as those involving professional negligence may involve both torts and contracts. The choice may affect time limits or damages, particularly given that damages are typically relatively limited in contract cases while in tort cases noneconomic damages such as pain and suffering may be awarded. Punitive damages are relatively uncommon in contractual cases versus tort cases. However, compensation for defective but not unsafe products is typically available only through contractual actions through the law of warranty.
In the United Kingdom, plaintiffs in professional negligence cases have some degree of choice in which law while in commercial transactions contract law applies; in unusual cases, intangible losses have been awarded in contract law cases.
In the United States, the pure economic loss rule has been used to "mark the boundary" between tort and contract law cases and courts may consider a case which involves both causes to fall under only one area of law. This "economic loss rule" was adopted by the Supreme Court of the United States East River Steamship Corp V Transamerica Delaval Inc. (1986) and has expanded across the country in a non-uniform manner, leading to confusion. Among other examples, the tort of insurance bad faith arises out of a contractual relationship, and "collateral torts" such as wrongful dismissal involving possible overlap with labour law contracts.
Read more about this topic: Tortfeasor
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