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ex contractu

Latin · ex kon-TRAK-too · Contract and commercial

Meaning. Arising out of a contract.

An obligation or action ex contractu is one that arises from an agreement between the parties, as opposed to one ex delicto, arising from a wrong (tort), or one imposed by law (quasi-contract). An action for breach of a contract of sale, or for the price of goods, is ex contractu.

The distinction matters for the measure of damages (expectation in contract; restoring the position before the wrong in tort), for limitation, and for who may sue: only a party to the contract can sue ex contractu, subject to the exceptions to privity. The same facts may give rise to both kinds of action, as where a carrier both breaks the contract and is negligent.

Example

The passenger's claim against the airline for the cancelled flight arises ex contractu, while her claim for the injury caused by negligent boarding arises in tort.

In Indian law

  • Indian Contract Act, 1872

See also

ex delicto · damages

Read more in the study notes

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