Saudi Arabia
JordanTHE LAW FIRM OF HAZIM AL MADANI ATTORNEYS AND LEGAL CONSULTANTS
Understanding the Fundamental Differences between Contractual and Tort Liability: A Comparative Study of Old and New Civil Transactions Law"
The recently introduced Civil Transactions Law seeks to modernize civil legislation, reflecting the social, economic, and technological transformations that have swept across the globe. This law introduces new regulations governing the responsibility for actions or omissions in various areas, primarily contractual liability and tort liability. This article will delve into the key differences between these types of liabilities and what the new system brings to the table.
Under the new Civil Transactions Law, the conditions of contractual liability include:
- - A valid contract between two parties
- -A breach of the contract by one party, either in whole or in part
- - Damage to the other party as a result of the breach
- - A causal link between the breach and the damage
The question arises, "Are the conditions of contractual liability different between the old and current civil transactions law?"
While these conditions align with the previous Civil Transactions Law, the new law introduces an additional condition: there should be no justified reason or liability exclusion for the breach. This implies that if there’s a legal or contractual justification for a party’s failure to fulfill obligations, or a provision that absolves it of liability, the other party cannot seek compensation. A typical example is a force majeure event preventing a party from performing its obligation.
The new law also addresses the magnitude of compensation in contractual liability cases:
If the parties have agreed on the compensation amount, this agreement is binding unless it contravenes the law or public interest.
In the absence of such an agreement, the law calculates compensation based on actual and anticipated damage resulting from the breach, considering the degree of fault and default by the breaching party.
In contrast, the previous law determined compensation based on proven damage, thus limiting compensation for foreseeable or potential damage unless legally validated. This restriction often hindered the victim’s right to adequate compensation.
Tort liability, on the other hand, arises without a contractual relationship when a perpetrator causes harm to others. This liability requires an act or omission by the perpetrator, damage to the victim, and a causal link between the act or omission and the damage. The objective of tort liability is to compensate the victim for the damage caused by the perpetrator’s actions or omissions.
In the absence of such an agreement, the law calculates compensation based on actual and anticipated damage resulting from the breach, considering the degree of fault and default by the breaching party.
In contrast, the previous law determined compensation based on proven damage, thus limiting compensation for foreseeable or potential damage unless legally validated. This restriction often hindered the victim’s right to adequate compensation.
Tort liability, on the other hand, arises without a contractual relationship when a perpetrator causes harm to others. This liability requires an act or omission by the perpetrator, damage to the victim, and a causal link between the act or omission and the damage. The objective of tort liability is to compensate the victim for the damage caused by the perpetrator’s actions or omissions.
The new law stipulates that tort liability covers all damages, material or moral, suffered by the victim, provided they directly result from the perpetrator's fault. Exceptions to this liability include:
A fault caused by factors beyond the breaching party’s control, such as fate, destiny, or force majeure.
Damage caused by factors attributable to the victim, a third party, or a defect in the contracted object.
The victim agreeing to bear the damage or waiving their right to claim compensation, unless this contradicts the law or public morals.
In conclusion, the new Civil Transactions Law introduces fundamental differences in the types of liability, whether in their sources, conditions, or objectives. These changes bring about new legal challenges and judicial practices, requiring a deeper understanding of the law’s nuances
Damage caused by factors attributable to the victim, a third party, or a defect in the contracted object.
The victim agreeing to bear the damage or waiving their right to claim compensation, unless this contradicts the law or public morals.
In conclusion, the new Civil Transactions Law introduces fundamental differences in the types of liability, whether in their sources, conditions, or objectives. These changes bring about new legal challenges and judicial practices, requiring a deeper understanding of the law’s nuances
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