The Law Of Tort |Corporate and business law |ACCA F4 Notes 2022

In this article we will discuss all important points for “the law of tort”. This is also an important topic in exam point of view so must read and do practice question as well. Practice questions for this topic is available on the site.

What is Tort?

Tort means civil wrong just like you were driving a car but from backside someone spit your car now he is the defaulter and you can do case on him and he has to pay your damages.

The law of tort gives you legal right to claim your damages.

Contract lawLaw of tort
Have proper format and paper workIt is just an incident
Damages depends on workIt does not depend on work
Damages pay one timeDamages pay according to condition

Notes: “Contract law” has limitation of 6 years if breach the contract and “law of tort” has limitation of 6 years as well but in personal injury case there is only 3 years limitation.

The Law of Tort Elements

Claim of tort can be Successful when these conditions are satisfied:

  1. Act or mistake by defendant
  2. Act should or must cause loss
  3. Court can take legal action against damage.


If a person did not fulfil his role or duty due to some case or any reason and it cause damage to other person or party.

Negligence can be succeed if following things proves:

  1. Defendant care of that duty
  2. If defendant breaks the duty rule
  3. Because of breaking rule damage occurs or suffered.

Neighbor Principle

This means if a company manufacture or sell a product then they should care for the customers or other people not to suffer from their product.

Neighbor are those persons who use the product and suffered from it.

Duty of Care Issues and limits

  1. The defendant should know what damages can occur by their product
  2. Is there any relation between defendant and customer
  3. They should impose duty of care
  4. Is there any public policy exist which tell duty of care should not exist.

Causality (Loss due to breach)

If a claimant suffered loss or damage due to breach but claimant has to demonstrate first. This is sometimes known as “But For Test“.

In the event of following cases the claimant can not link between defendant conduct damages occurred.

  1. If damages caused by someone else or from somethings else
  2. If there was already a probability to cause damage

Losses which are recoverable such as personal injury, Damage of property and Financial lose due to personal injury like wages.

Novus Actus Interveniens

A point or situation where a defendant breaks the chain of liability. Followings are the acts which breaks the chain of liability:

1 Act of the Claimant: If the reason is not valid

2 Act of the third Party: If the damage is occurred or third party involves in that damage then will look on cause whether it is foreseeable or not, if that is foreseeable then defendant breaks then chain of liability and if unforeseeable then defendant is liable to pay the damages.

3 Natural Events: Natural event breaks the chain liability until claimant proves that the cause happens because of defendant instead of natural event.

Vicarious Liability

Party A faces some damages because of party B but claim was made from party C who is not involve in the case or action. For example you buy some medicine from J.K store and the person on the store gives you another medicine instead of prescribed medicine. When you take that medicine your health get worst and you file a case on J.K store owner when there is not involvement of the J.K store’s owner.

A Special Relationship exist where a professional advice a person whom he knows personally and advice on the matter which he knows better or relate to that matter.

The Law of tort “Passing Off”

Passing Off means the use of business name of others which may cause mislead the customers and they thinks that the business is of another usually use trademarks in “Passing Off“.

Defendant have to prove that they were not the part of negligent because of burden of proofs is opposed this is Known as “res ipsa loquitur“.

The defendant is not liable to pay damages because the claimant has accepted the risk of injury this is known as “Volenti no fit injuria“.

The Law Of Tort is an important topic which examines usually in the Corporate and business law paper. carefully read and solve the practice questions of “The Law Of Tort” which is available on the site.

Must share it with your friends and classmates.

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Naveen Rajput

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