LAW

Understanding Principles of Liability in Negligence in Business Activities

Understanding Principles of Liability in Negligence in Business Activities

Introduction

Citizens rely upon governments and regulators to protect them from harm, and understandably look for compensation when public authorities fail to deliver. Tort liability is uncertain, and the law is evolving. Neglect is a professional wrongdoing that harms someone. A tort of negligence may include negligence, breach of fiduciary duty, or misrepresentation. In this paper, the concept of negligence in business context is addressed in detail along with the vicarious liability in business and healthcare settings. A brief account on liability in ort and contractual liability and the differences between both is also given in this paper.

Discussion

Liability in tort

The tort liability is a form of fault-based liability. In contrast to product liability, a victim may also demand compensation. The tort liability is governed by the law of Thus one who is liable to pay damages, the injured a protective statute and thus a third party damages such as the violation of a protection Act, for example, a traffic accident, in which people are injured due to exceeding the maximum speed. Against the effects of tort liability may be protected by certain insurance companies (Porat & Stein, 2001, pp. 121-28). For example, replace liability insurance that damage to third parties caused by the insured. In case of violation of contractual provisions (driving under alcohol or drugs, willful damage induction) is not liable to insurance.

Contractual liability

Contractual liability (Liability of Contract), after the conclusion of the contract, or the formation of the contract as well as the performance of the contract period, the damage due to the behavior of the party of the contract led to the other party in interest, and should bear the legal consequences (Stanovich, 2002, pp. 1-5).

Differences

The contractual liability and the liability in tort differ in terms of obligations. The obligations agreed to in contracts are completely voluntary. None of the involved party is enforced to sign a contract against their will (Bar, 2009, pp. 101-08). They are aware of the extent of their ability and also about the consequences they may face at the time of breach. On the other hand, tort liability is often imposed on organizations or people without taken them into knowledge or informing them about the extent of this liability. The tort law often requires insurance in order to protect or defense against the claims of liability in negligence. But it is practical for business organizations to carry insurance for their possessions and property at the time of claims against them. There are several claims which can be made against any business such as a negligence action, breach of contract claim, criminal action or a tort claim (Fletcher, 2008, pp. 251-56).

Negligence

A negligence tort gives causing an unreasonable risk of harm behavior. An action is usually considered a negligence action, cause of action, including the four constituent elements: the existence of the obligation, the breach, causation and damages (Hill, 2006, ...