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Business Law

Civil Liability and Torts

Business I 236 words Free to read

When You Must Pay for Harm

Civil liability answers who bears the cost of a harm? Two doors lead there, dividing obligations into separate legal regimes.

ContractualExtracontractual (Tort)
LinkA breached agreementThe general duty not to harm
DutyThe contract's termsReasonable diligence
CaseLate builder, bad deliveryTraffic accident, falling sign

Extracontractual liability stems from Article 1902 of the Civil Code: whoever by action or omission causes damage to another, with fault or negligence, must repair the damage caused.

Liability needs three elements like a circuit in series: Fault, Damage, and Causation. If any element is missing, the claim collapses completely.

The Elements and Business Risk

To trigger Article 1902, all three elements must hold simultaneously:

Business exposures: An employer faces vicarious liability for employee torts. Manufacturers face strict liability where fault drops out of the formula.

Pitfall: Courts increasingly presume fault in risky activities. The defendant must prove diligence, turning managerial arithmetic—probability times magnitude—into an urgent necessity.
A three-term product, then two ways business law reshapes it: who

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Business Law