What is a tort?

A tort is defined as a non-contractual civil wrong that results in harm or loss to another person, leading the injured party to seek compensation through legal means. This legal concept emphasizes the obligation that individuals have to avoid causing harm to others, whether intentionally or through negligence.

In the context of business law and ethics, understanding torts is essential because they can arise in various scenarios, such as in personal injury cases, defamation claims, or liabilities arising from defective products. The primary purpose of tort law is to provide relief to the injured parties and deter others from committing similar wrongful acts. It is distinct from criminal law, as torts are civil matters rather than criminal offenses, meaning they do not involve the state prosecuting a perpetrator but rather an individual seeking damages.

Other options present misunderstandings: a binding legal contract involves mutual agreement between parties, a criminal offense pertains to actions that violate laws and are punishable by the state, and a type of insurance claim may arise from various situations, but it does not define the tort itself. Thus, understanding torts is crucial for navigating legal responsibilities in both personal and commercial contexts.