contracts and duty

Question 1

What variables are important for whether an contract crates or enlarges a duty of care?

Answer 1

Was it only an economic matter or did it attempt to provide physical safety?

did the plaintiff reasonably & foreseeable rely on the contract or undertaking?

Question 2

What is the restatement view on contract liability

Answer 2

If Defendant didn’t create a risk the basic rule is that Defendant has no duty. (consider misfeasance)

Question 3

What other questions arise when a contract is offered to create or enlarge a duty of care?

Answer 3

Is the defendant bound to perform it for the benefit of another?

What is the duty the defendant has undertaken

What is the scope of the duty undertaken

Question 4

When does the economic loss rule apply?

Answer 4

In situations which both contract and tort claims apply.

Question 5

What rules tend to limit recovery of economic loss?

Answer 5

• Someone not in a special or contractual relationship owes no duty of care to protect strangers agaenst stand-alone economic harm
• People in special relationships arising out of a contract or undertaking may not owe a duty thatis not deliniated in the contract

Question 6

What determines whether a duty is within the scope of undertaking?

Answer 6

Rather than any alleged industry standard, the facts of the undertaking must form the foundation for determining the scope.