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,
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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).
There are six elements when committing a crime; corpus delicti, actus reus, mens rea, specific intent, general intent, and negligence. The first, Corpus delicti, is defined as "the body of crime” this is the material that substance a crime. The phrase corpus delicti means that before a person can be persecuted there must be concrete evidence that the crime was committed. The corpus delicti also helps to describe the evidence that proves that a crime has been committed.
Many believe that liability is a biggest issue in a general partnership than in a sole proprietorship. The owners of the company are still fully liable for any debts the company may accrue as well as the liability for any lawsuits that may be brought against the company. However, the bigger issue in a partnership is that now each partner can be liable for the other partner’s actions. If one partner is sued for malpractice, the other partner may suffer because of it.
In case of breach of contract liability shall be limited or unlimited depending on the type of activity. There are five types of business organizations in the United States. These forms are sole proprietorship, a partnership, limited liability company, partnership, and limited liability company. Each of these formations business has advantages and disadvantages for the employer. There are different levels attributed to the owners and partners in each of these forms of business organization responsibility. As for the different levels of responsibility that owners and partners can help in selecting the appropriate form
LIABILITY – There is no separation between the individual and the business. As the owner and operator of a sole proprietorship, all of the profit and loss is the personal responsibility of the business owner creating unlimited liability.
* The liability does not fall on one individual instead it is assumed by the business in a corporation. Individuals representing the company can still be personally sued in some states.
There are many defendants in this case. First and foremost Dale, the loss prevention officer for Wal-Mart, is a defendant because he intentionally restrained Bob against his will and the restraint was unlawful. Dale also failed to follow company rules; Dale was supposed to watch a video that explained how to catch and deal with thieves but decided not to watch the video. The second defendant would be Dale’s supervisor. The supervisor recorded a pass on an exam that dale did not take. The exam Dale failed to write was based on the video that Dale did not watch. The third defendant would be Wal-Mart; Wal-Mart assumes liability because they could be at fault for not properly training staff. Bob would want to take action on
Liability – There are several liability within sole proprietorship. As the owner you are a
Engineers, contractors, and other businesses must be mindful of and knowledgeable of their legal obligations when performing their occupation or supplying a product. Negligence in the design or construction of a product that results in damage or bodily harm, or could result in damage or bodily harm, can result in liability for economic loss under Canadian Tort law. Engineers, architects, and contractors need to be respectful of their duty of care to ensure their product is precisely produced with no danger of negligence.
Partnership liability tort can take place when a partner or all partners acting on partnership business causes injury to a third person. Cause of this tort could be a negligent act, a breach of trust, breach of fiduciary duty, defamation, fraud, or another intentional tort (Cheeseman, 2010, p. 538). Under the Uniform Partnership Act, partners are jointly and severally liable for torts and breaches of trust (UPA, 2010). This is true even if the co-partner(s) did not participate in the act. The joint and severally liable tort permits a third party to sue one or more of the partners
The principle of direct liability is an individual or business established on negligence or any results in harming or damaging to another individual or their property. Hospitals or providers are liable for the conduct and treatments provided by their physician members. Any damage or treatment a physician’s provides is covered by the hospital. Enterprise liability is a legal matter that a related corporations or people can be held responsible for any actions, damage or wrong
“Liabilities are debts: money you owe. Every business carries some liabilities—for example, ongoing payments to suppliers, rent for your office, compensation to employees, or fees for contractors” (Mancuso, 2014). Added liabilities may result if a business is ravaged by a fire or flood or if the business owner(s) become the victim of a lawsuit—for example, a patron, client or customer decides to sue your company after hurting themselves on company property. It is the intent of this paper to examine the role and responsibility of liability in different types of businesses from sole proprietorships to
Notice the annual premium for the limited tort option? It’s $373 per year. And the annual premium for the full tort option? $410 per year. That’s a difference of only $37 per year. Per year! That’s a difference of only $3.08 per month, or $0.10 per day! Why would my client seriously limit his rights to save just $37 per year? His agent recommended he choose limited tort, but didn’t tell him what limited tort is, and didn’t tell him he was seriously limiting his rights. Absolutely ridiculous, and all too common.
Two individuals, the Baker brothers have been long-term employees of Bin Inc. a company earning $240,000 per year and the only company providing food to a chain of guesthouse. The Bakers each make $55,000 per year. The contract between Bin Inc. and the guesthouses was established in 1981 and is currently being renewed every three years on September 30 taking effect January 1 of the following year. Bin Inc. and the guesthouses agreed to have four deliveries per day so that guests are adequately provide for. The Bakers are aware that net profit from Bin Inc. catering operation average $240,000 per year. They also know that late arrivals have caused tension between the guesthouses and Bin Inc. a scenario that are contrary to the agreements between the parties. They have started their own food company (Bakers Inc.) and did not rule out service to the guesthouses. Since starting the company, the Bakers have been absent from Bin Inc. on a number of occasions without pay and this has contributed to the deteriorated service of Bin Inc. to the guesthouses. In addition, seven guests at the guesthouses suffered food poisoning after consuming the food (no fault of their own) on July 18, 2012 and approached the guesthouses who then informed Bin Inc. The tainted food can be traced to the work of Farknn Baker. The Bakers have conceded that Bin Inc. had a recent City inspection on July 10 and was given 15 days to improve sanitary conditions at their kitchen or face closure. Bin
Contingent Liability is a condition that refers to the possibility of a future event happening and addresses the responsibility of the party liable should the event take place. In today’s real estate market both sellers and buyers may have contingencies stated in the terms and conditions for selling and purchasing a home. The most common contingent liability are guarantees to debt.
Can you elect to recover your damages from the resort only, even though Tex and Rex were primarily responsible for your injuries?