Understanding Business Torts
A tort is a set of behaviours in which a person or business harms another person or business, and the law holds the offender liable for the damage caused. Often referred to as a civil wrong or in the United States, a “tort”, it is a legal concept defined as intentional or unintentional interferences with a persons’ property, finances, or rights. Business torts can involve a variety of activities such as negligence, fraud, misappropriation, and breach of contract.
Preventing Business Torts
Business torts can cause serious financial damage not only to the individual or business affected but to the economy as a whole. To avoid business torts, businesses should have a thorough knowledge of the law and try to conduct business in a fair and equitable manner. Businesses should also ensure fair and proper corporate governance with the help of ethical and professional behavior, and using clear and enforceable contracts.
Legal Remedies for Business Torts
Individuals or businesses affected by a business tort may be able to take legal action against the wrongdoer to seek compensation. Possible remedies for business torts include contractual damages, injunctive relief, and punitive damages. Depending on the nature of the tort, the court may award monetary damages designed to make the affected individual or business whole for the losses they have suffered.