A tort is a civil wrong. The law of tort, like contract, is part of the civil law and has been developed from common law principles. Unlike the law of contract there is no complete body of rules which apply to all torts in the way that all contracts are governed by the same general principles. There are some similarities between contract and tort but also substantial differences. In civil jurisdictions, contract and tort tend to be grouped together as the Law of Obligations. A claim in tort is concerned with the adjustment of losses while the remedy sought is damages. The plaintiff is seeking compensation for loss to property, reputation, pocket, physical injury or some other interest protected by the law. This may be in the form of an act, omission or the giving of advice. There can be an overlap between tortious liability and other areas of law, while certain factual circumstances may result in a civil action in tort and also in criminal proceedings. Common examples include road traffic accidents and accidents at work. In such circumstances each set of proceedings is dealt with differently, one aiming to compensate the victim and the other to punish the wrongdoer. Liability in contract is dependent upon the existence of an agreement, while duties in tort are imposed automatically by the law. The same act may be a tort and a breach of contract. A person who commits a tort is known as a tortfeasor.

A contract is a legally binding agreement between two or more parties, which obligates those parties to perform specific acts. In order for a contract to be enforceable, each party must exchange something of value, which is known as “consideration.”

Additionally, all involved parties need to have a sound understanding of every term of the contract, and they must be in mutual agreement on the terms. Thus, a legally valid contract exists if there is:

• A valid offer; 
• An acceptance of the offer; and
• An exchange of some form of consideration. 

If either party breaches their duty to perform or obligations under the contract, contract law aims to provide damages to the injured party. Typically, damages for a breach of contract are awarded with the intent to compensate the non-breaching party for losses suffered as a result of the contract breach. Other damages that may be awarded in contract breaches include restitution, liquidated damages, nominal damages, rescission of the contract, or in some cases punitive damages may be awarded. 

The object of an agreement is lawful unless it is forbidden by law; is of such a nature that, if permitted, it would defeat the provisions of any law; is fraudulent; involves or implies injury to the person or property of another person; the court regards it as immoral; it is opposed to public policy.

Every agreement by which anyone is restrained from exercising a lawful profession, trade or business of any kind, to that extent is void. An agreement is void to the extent that it restricts absolutely, a party from enforcing his contractual rights by usual proceedings in any ordinary court.