B LAW301 Lecture Notes - Lecture 3: Liability Insurance, False Imprisonment, Product Liability
3 Apr 2017
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Document Summary
Tort: is a failure to fulfill a private obligation imposed by law. Tort law requires people to compensate victims. Tort law = private law (outside of breach of contract) Tort damages look backward (to put you back into the position before the tort was committed). Contract damages look forward (places the plaintiff as if the contract had been performed). Similarities: structure: both torts and contract involve primary and secondary obligation, primary obligation: tells people how they should act, secondary obligation: tells people how they should act after primary obligations have been broken. Definition: a contract in which an insurance company agrees, in exchange for a price, to pay damages on behalf of a person who incurs liability. Liability insurance also includes a duty to defend which requires the insurance company to pay the expenses that are associated with lawsuits that are brought against the insured party. Liability insurance policies do not cover all torts.
