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 from an exam point of view so must read and do practice questions as well. Practice questions for this topic are available on the site.

What is Tort In Law

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

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

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

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

The Law of Tort Elements

The claim of tort can be Successful when these conditions are satisfied:

  1. Act or mistake by a defendant
  2. The act should or must cause a loss
  3. The court can take legal action against damage.

What Is Negligence In the Law Of Tort

If a person did not fulfill his role or duty due to some case or any reason and it causes damage to another person or party.

Negligence can succeed if the following things are proved:

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

Neighbor Principle

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

Neighbors 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 the defendant and the customer
  3. They should impose a 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 the following cases, the claimant can not link the defendant’s conduct and the damages that occurred.

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

Losses that are recoverable such as personal injury, Damage of property, and Financial loss 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 that break the chain of liability:

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

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

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

Vicarious Liability

Party A faces some damages because of party B but the claim was made by party C who is not involved in the case or action. For example, you buy some medicine from the J.K. store and the person in the store gives you another medicine instead of the prescribed medicine. When you take that medicine your health gets worst and you file a case against the J.K. store owner when there is no involvement of the J.K. store’s owner.

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

The Law of tort “Passing Off”

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

The defendant has to prove that they were not the part of negligent because the burden of proof 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 Corporate and business law papers. carefully read and solve the practice questions of “The Law Of Tort” which is available on the site.