Contract Law: Australia V. Amann Aviation

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Recommended: Impact of tort law

• Tort duties owed to world, contracts only to other party
• Tort duties imposed by law, contracts determined by parties. However, tort duty to prevent purely economic loss owed to members of determined class, and erosion of private means it is not only parties to bargain who may claim non-fulfilment
• Many contract terms implied, whereas obligations of tort generally only imposed on those who choose to undertake activity/enter relationship
• Contract seeks to protect single interest, whereas torts protects range of interests. However, contract also protects those who have relied on words/deeds – estoppel
• Contract law also provides compensation to injured party
• Growing recognition that in a number of circumstances concurrent duties may be owed in both tort …show more content…

• For most civil type actions, is six years
• According to law of contract, action accrues when breach of contract happens
• According to law of tort (as damage gist of negligence), action accrues when damage occurs Second difference:
• Difference in object/purpose of damage in tort and contract
• In tort, object is to place plaintiff in position if tort had not occurred (Marks v GIO Australia Holdings Ltd 1998 HC)
• In contract, object is to put plaintiff in position had the breach of contract not occurred (Robinson v Harman – approved Commonwealth of Australia v Amann Aviation 1991 HC)
• Important difference: in tort to put in position pre-tort, in contract to put in position as if contract had been performed (post-contract result vs pre-tort result)
• Contract is concerns with what gains were meant to happen, if the contract happened
• This can lead to a substantial difference in the amount awarded in damages but in tort, there are different grades of damages (main is compensatory damage) also aggravated, punitive/exemplary etc
• Neither of those two extra levels of damages are available in contract – compensatory damages only, thus perhaps suing in tort may allow a greater amount of

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