Torts and Contract Liabilities and Ways to Avoid Them

Running Head: TORTS AND CONTRACT LIABILITIES AND WAYS TO AVOID THEM Potential Torts and Contract Liabilities And Different Ways to Avoid Them Abstract People who do business as a sole proprietor or in a partnership are liable for the torts committed by them and for torts committed by the business and its agents. The best way to avoid tort liability is to set establish their business as a corporation or a limited liability company. A corporation or limited liability company will act as its own entity for all intent and purposes. When it becomes it own entity you will have to separate your finances from that of the business. Remember that it does not matter what type of business organization you select,†¦show more content†¦Remember that it does not matter what type of business organization is selected, if a person commits a tort they are still personally held responsible. For example, if a shareholder in a corporation runs over an employee while driving a company truck, he or she is still held liable for negligently operating the vehicle. There are certain clauses that can be beneficial in a contract as well as clauses that one should be wary of. Some clauses that can be beneficial include hold harmless clauses, which are used to shift liability from person to another; and indemnification clauses, which are designed primarily to transfer the liability and expense of claims brought against the business away from the entity (Rapp). While some clauses are beneficial, one should be wary of others. For example, one should avoid clauses pertaining to his or her rights and duties in the event that a claim or suit arises, which can create a contractual duty on their part (Rapp). Entering into a provider agreement that forfeits a person s ability to seek compensation for services they are entitled to should also be avoided. One should always be cautious of forfeiting their right to compensations (Rapp).Show MoreRelatedBusiness Tort Liability : Tort1188 Words   |  5 PagesBusiness Tort Liability Tort is a wrong. The law provides remedies to persons or businesses that are injured by the tortious actions of others (Cheeseman, 2014, p. 115). In the law of tort, there are two parties, including plaintiff and defendant. Usually, the plaintiff is a person directly affected either emotionally or physically by the incident because of the defendant’s actions while the defendant is the individual who injured the plaintiff (Staver Law Group). In this case, Mr. Speed is theRead MoreLegal Personality And Limited Liability1576 Words   |  7 Pagesbenefits and a shield of protection against liability for managers and shareholders it can also have harmful effects on other non-shareholder stakeholders such as creditors, involuntary creditors and employees. This essay will discuss separate legal personality and limited liability and the effects that these principles have on competing interests. This essay will also discuss how some of the negative effects of separate legal personal ity and limited liability have been lessened by statute and generalRead More1.As A Starting Note, Any Mention Of Concurrent Liability2007 Words   |  9 Pagesmention of concurrent liability should be assumed to mean concurrently liability in tort and contract. Traditionally the distinction between contract and tort was that contract concerns the improvement of the claimant s position, whereas tort is concerned with dealing with their position worsening. There has been dispute around concurrent liability and its ambiguity has led to varying decision in cases and statute making as Taylor puts it â€Å"the basis of concurrent liability uncertain†. This essayRead MoreEssay on Informed Consent855 Words   |  4 Pagesin general the same way as physicians with their patients.(http://www.minddisorders.com/Flu-Inv/Informed-consent.html#ixzz1HmB0P8xC) It must be understood that to be valid Informed Consent has to be voluntary and not coerced, specific to the particular problem , legal, and understood by the patient. Tort Law is defined as â€Å"the area of law that developed in the English Common Law other than breach of contract, which imposes a duty by operation of law on all persons to avoid harm to others. TheRead MoreTort, Torts, And Strict Liability Torts3286 Words   |  14 PagesIntroduction A tort is a wrongful act or an infringement of a right other than under a contract leading to civil legal liability. Torts differ from contract law in terms of the voluntariness of entering into an agreement. When two or more parties create a contract, each party agrees to give up something in return for receiving some benefit. Parties to a contract voluntarily and knowingly assume duties and obligations to others. By contrast in tort law, duties are imposed by the law without the expressRead MoreAlumina Inc: Minimizing Tort Liability Arising Out of Regulatory Risks1338 Words   |  6 Pagescomply with a whole host of governmental regulations. Such risks impact a company’s existing assets, earnings, and often, reputation. In the context of tort liability arising out of non-compliance of government regulations, it is in every company’s business interest to allocate resources to identify those risks, and to implement action plans to avoid such risks. In the event thos e risks do materialize, the company needs to have system in place to properly manage and contain monetary and reputationalRead MoreHow Liability For Negligence?1246 Words   |  5 PagesDiscuss how liability for negligence can arise in law in relation to construction activity Negligence in law can be defined as â€Å"a failure to behave with the level of care that someone of ordinary prudence would have exercised under the same circumstances†. Regarding the construction industry it is of importance to understand the roles of the many skilled professionals involved, such as the architects, quantity surveyors, engineers, project managers etc. Each of these professions have a duty ofRead MoreAspects of Contract and Negligence for Business1883 Words   |  8 Pageslegal doctrine, distinct from civil law. A contract is a written agreement with terms and conditions. The signing parties should observe the terms and conditions until the expiration of the contract, or end date (Business Dictionary, 2013). The first requirement for making a contract is an offer. It is a promise by the offeror to do something and to pay the price of the offer. There are at least two parties of the contract and different types of contract. It depends of the needs of the parties. Read MoreBusiness Contracts and Legal Risks2094 Words   |  9 Pagesfully prepared on handling legal pitfalls that might come their way. Creating a system that defines and controls the company’s workflow is important in running a smooth and profitable business, as well as avoiding potential troubles with the law in the future. There are many risks that companies can be prepared for including structuring effective business contracts, avoiding lawsuits on business torts, minimizing product liability risks, avoiding employee lawsuits and avoiding risk in domesticRead MoreSteps Of A Legal Relations1588 Words   |  7 Pageshave the intentions to create a legally binding contract. Whenever a contract is signed in relati ons to business activities, it gives one side of the party the power to sue the other party if they don’t keep up with their contractual obligations. A contract can be rejected if the parties agree to not make it legally binding. You would normally see the words â€Å"subject to contract† or â€Å"without prejudice† which means that whatever is written in the contract is not legally binding. 2. Offer This is when