Impact of Tort of Negligence and Contract Law on Amazon.com
Added on 2023-06-12
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Investigate how the tort of negligence and contract law have an impact on Amazon.com.
Contract law is the body of rules governing the contractual agreements that take place between
persons or businesses. In this context, a new contract has been described as an agreement that has
been finalized between the parties in which outlines the duties and responsibilities of the parties
towards each other. A contract can be formed regarding any type of transaction. In this way, the
contract law deals with various transactions related with sale of goods and services. The law of
contract provides what can be included in a contract and what cannot be added and similarly the
remedies that may be available to the other party in case of a breach of contractual obligations by
one party. As compared to it, the tort law is related with the situations where one person has
caused harm or injury to the other person. In this way, the tort laws cover the violations, where,
has been caused to the other party intentionally like battery.1 Tort law also deals with the
incidents where a party can be held liable even if it had not acted intentionally writing cases of
negligence or strict liability claims. Generally tort laws resulted in the paying of monetary
damages by the liable party as compensation for the loss suffered by the other party.2
It is regard, there are certain similarities present between contract law and tort law. At the most
basic level, both these laws are generally related with the duty and a breach of such duty. In case
of the breach of a contract, the violation is related with the duties that have been prescribed by
the contract. While it may be mentioned in the contract that it is the duty of one party to pay the
other party for the repair services provided by such a party and at the same time, the other party
1 Maureen, Brunt, ‘“Market Definition” Issues in Australian and New Zealand Trade Practices Litigation’ (1990) 18
Australian Business Law Review 86
2 J Dianne, Brinson, ‘Proof of Economic Power in a Sherman Act Tying Arrangement Case: Should Economic
Power Be Presumed When the Tying Product is Patented or Copyrighted?’ (1987) 48 Louisiana Law Review 29
Contract law is the body of rules governing the contractual agreements that take place between
persons or businesses. In this context, a new contract has been described as an agreement that has
been finalized between the parties in which outlines the duties and responsibilities of the parties
towards each other. A contract can be formed regarding any type of transaction. In this way, the
contract law deals with various transactions related with sale of goods and services. The law of
contract provides what can be included in a contract and what cannot be added and similarly the
remedies that may be available to the other party in case of a breach of contractual obligations by
one party. As compared to it, the tort law is related with the situations where one person has
caused harm or injury to the other person. In this way, the tort laws cover the violations, where,
has been caused to the other party intentionally like battery.1 Tort law also deals with the
incidents where a party can be held liable even if it had not acted intentionally writing cases of
negligence or strict liability claims. Generally tort laws resulted in the paying of monetary
damages by the liable party as compensation for the loss suffered by the other party.2
It is regard, there are certain similarities present between contract law and tort law. At the most
basic level, both these laws are generally related with the duty and a breach of such duty. In case
of the breach of a contract, the violation is related with the duties that have been prescribed by
the contract. While it may be mentioned in the contract that it is the duty of one party to pay the
other party for the repair services provided by such a party and at the same time, the other party
1 Maureen, Brunt, ‘“Market Definition” Issues in Australian and New Zealand Trade Practices Litigation’ (1990) 18
Australian Business Law Review 86
2 J Dianne, Brinson, ‘Proof of Economic Power in a Sherman Act Tying Arrangement Case: Should Economic
Power Be Presumed When the Tying Product is Patented or Copyrighted?’ (1987) 48 Louisiana Law Review 29
was going to provide the repair services. Therefore if any of these parties failed to perform its
obligations under the contract, a suitable remedy may be available under the contract law.3
In case of most of the violations of the tort law there is a breach of duty. For example, personal
injuries may take place as a result of the breach of duty by the other party, which requires such
party not to cause harm to the other person.4 There are certain relations in which a duty of care is
imposed on a party like it is the duty of the shopkeeper to maintain the premises properly so that
it remains safe for the visitors to the shop. An award of damages can be obtained in case of
contract as well as for the violation of tort law. Damages can be described as the monetary
payment that is tabled by the liable party regarding the losses that may be suffered as a result of
the breach.
It needs to be noted that while there are several similarities present between the law of contract
and the law of tort, there are also certain basic differences present between the two. One of the
most significant difference is that exists between the law of contract and tort law is related with
the issue of consent. While in case of contract law, the parties enter into the contract knowingly
and without any coercion to do so. For the purpose of creating a valid contract, among other
things, it is also necessary that the parties should give their consent to the outcome of the
contract as mentioned in the document.5 The meaning of this requirement is that a party cannot
be forced to enter into the wanted by the other party without its free will.6 As a result, in case of
3 Tom W, Bell, ‘Escape From Copyright: Market Success vs Statutory Failure in the Protection of Expressive
Works’ (2001) 69 University of Cincinnati Law Review 741
4 Julie E, Cohen, ‘Copyright and the Jurisprudence of Self-help’ (1998) 13 Berkeley Technology Law Journal 1089
5 Richard Cornes, and Todd, Sandler, The Theory of Externalities, Public Goods and Club Goods (Cambridge
University Press, Cambridge, 1986).
6 Lothar Determann, and Aaron Xavier, Fellmeth, ‘Don’t Judge a Sale by its License: Software Transfers under the
First Sale Doctrine in the United States and the European Community’ (2001) 36 University of San Francisco Law
Review 1
obligations under the contract, a suitable remedy may be available under the contract law.3
In case of most of the violations of the tort law there is a breach of duty. For example, personal
injuries may take place as a result of the breach of duty by the other party, which requires such
party not to cause harm to the other person.4 There are certain relations in which a duty of care is
imposed on a party like it is the duty of the shopkeeper to maintain the premises properly so that
it remains safe for the visitors to the shop. An award of damages can be obtained in case of
contract as well as for the violation of tort law. Damages can be described as the monetary
payment that is tabled by the liable party regarding the losses that may be suffered as a result of
the breach.
It needs to be noted that while there are several similarities present between the law of contract
and the law of tort, there are also certain basic differences present between the two. One of the
most significant difference is that exists between the law of contract and tort law is related with
the issue of consent. While in case of contract law, the parties enter into the contract knowingly
and without any coercion to do so. For the purpose of creating a valid contract, among other
things, it is also necessary that the parties should give their consent to the outcome of the
contract as mentioned in the document.5 The meaning of this requirement is that a party cannot
be forced to enter into the wanted by the other party without its free will.6 As a result, in case of
3 Tom W, Bell, ‘Escape From Copyright: Market Success vs Statutory Failure in the Protection of Expressive
Works’ (2001) 69 University of Cincinnati Law Review 741
4 Julie E, Cohen, ‘Copyright and the Jurisprudence of Self-help’ (1998) 13 Berkeley Technology Law Journal 1089
5 Richard Cornes, and Todd, Sandler, The Theory of Externalities, Public Goods and Club Goods (Cambridge
University Press, Cambridge, 1986).
6 Lothar Determann, and Aaron Xavier, Fellmeth, ‘Don’t Judge a Sale by its License: Software Transfers under the
First Sale Doctrine in the United States and the European Community’ (2001) 36 University of San Francisco Law
Review 1
contract, generally the damages are related with the mistake or misunderstood in the parties
because the parties are typically aware of the nature of transaction that they're going to enter
through the contract.
On the other hand in case of tort law the indirection is never based on consent. Generally torts
involve an intrusion by one party in the health, safety or the privacy of the other party. Therefore,
if consent is given by the victim to the tortuous act, it may result in providing a defense to the
other party, as a result of which the party may not be able to recover damages.7 This difference
related with consent can be seen in the way in which damages awarded by the courts. Therefore,
in case of contract, the purpose of awarding damages by the court is to store the parties to the
original position in which they were before the breach of the contract.8 On the other hand in case
of a claim under tort law, generally the damages awarded for compensating the victims for the
loss of injuries suffered by it. Sometimes, punitive damages are also awarded under the tort law
for the purpose of managing the defendant. However, you damages are not generally issued in
case of a claim under the contract law.
For example, Amazon has told that it is going to change its contracts for small businesses so that
it can fulfill the Australian rules. The Australian authorities have also written to Amazon in other
to make sure that the company complies with the unfair contract term legislation of Australia.9
According to the terms and conditions of Amazon, the company always reserves the right of
refusing service, terminate rights to use, terminate accounts or to remove or edit content at its
7 Richard A, Epstein, ‘Intellectual Property: Old Boundaries and New Frontiers. Addison C Harris Lecture’ (2001)
76 Indiana Law Journal 803
8 Gillian K, Hadfield, ‘An Incomplete Contracting Perspective on Fiduciary Duty’ (1997) 28 Canadian Business
Law Journal 140
9Anne Fitzgerald, and Cristina, Cifuentes, ‘Pegging Out the Boundaries of Computer Software Copyright: the
Computer Programs Act and the Digital Agenda Bill’ in Anne Fitzgerald et al. (eds) Going Digital 2000 (2nd ed.,
Prospect Media Pty Ltd, St Leonards, 2000).
because the parties are typically aware of the nature of transaction that they're going to enter
through the contract.
On the other hand in case of tort law the indirection is never based on consent. Generally torts
involve an intrusion by one party in the health, safety or the privacy of the other party. Therefore,
if consent is given by the victim to the tortuous act, it may result in providing a defense to the
other party, as a result of which the party may not be able to recover damages.7 This difference
related with consent can be seen in the way in which damages awarded by the courts. Therefore,
in case of contract, the purpose of awarding damages by the court is to store the parties to the
original position in which they were before the breach of the contract.8 On the other hand in case
of a claim under tort law, generally the damages awarded for compensating the victims for the
loss of injuries suffered by it. Sometimes, punitive damages are also awarded under the tort law
for the purpose of managing the defendant. However, you damages are not generally issued in
case of a claim under the contract law.
For example, Amazon has told that it is going to change its contracts for small businesses so that
it can fulfill the Australian rules. The Australian authorities have also written to Amazon in other
to make sure that the company complies with the unfair contract term legislation of Australia.9
According to the terms and conditions of Amazon, the company always reserves the right of
refusing service, terminate rights to use, terminate accounts or to remove or edit content at its
7 Richard A, Epstein, ‘Intellectual Property: Old Boundaries and New Frontiers. Addison C Harris Lecture’ (2001)
76 Indiana Law Journal 803
8 Gillian K, Hadfield, ‘An Incomplete Contracting Perspective on Fiduciary Duty’ (1997) 28 Canadian Business
Law Journal 140
9Anne Fitzgerald, and Cristina, Cifuentes, ‘Pegging Out the Boundaries of Computer Software Copyright: the
Computer Programs Act and the Digital Agenda Bill’ in Anne Fitzgerald et al. (eds) Going Digital 2000 (2nd ed.,
Prospect Media Pty Ltd, St Leonards, 2000).
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