Contracts & ExecutionQuestion 846 of 1605
The distinction between a breach of contract and a tort is important because:
a.Contract claims always allow jury trials but torts never do
b.Both always allow punitive damages
c.Torts can never involve contractors
d.Breach of contract typically limits recovery to contract (economic) damages, while a tort such as negligence may expose a party to broader damages
Explanation
A breach of contract arises from failing to perform a promise, and recovery is generally limited to contract-based economic damages, usually without punitive damages. A tort, such as negligence or fraud, is a civil wrong independent of the contract and can expose a party to broader damages, sometimes including punitive damages. The same conduct can sometimes give rise to both, but the categories differ, and torts are not barred merely because a contractor is involved.
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Reviewed by Abraham Chen — Licensed California General Contractor (CSLB License #1101856 — verify)