General Insurance✓ Verified · outline & fact-checked · Sep 2026Difficulty 1/5
Which statement correctly distinguishes contract law from tort law?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Contract law enforces obligations the parties voluntarily created through agreement — offer, acceptance, consideration. Tort law enforces duties society imposes regardless of agreement, such as the duty not to harm others negligently. An insurance policy is a contract, so its disputes are usually contract disputes, although bad-faith handling can also give rise to tort liability.
Why the other options are wrong
- B) Contract law governs all kinds of agreements, not just property, and tort law covers many harms beyond personal injury.
- C) Torts do not require agreements at all, and some contracts can be valid without a writing.
- D) The two bodies of law differ in the source of the duty — agreement versus society-imposed duty.
Memory hook
Contract = duty you signed. Tort = duty you were born with. Agreements versus society's rules.