Non-contractual liability: damage without a contract

Not all liability arises from a contract. Even without an agreement, you as an entrepreneur can be liable for damage you cause. This is referred to as non-contractual liability.

What is an unlawful act?

The most common form of non-contractual liability is the unlawful act. This occurs when:

• ✓ there is an unlawful act
• ✓ damage occurs
• ✓ there is a causal relationship between the act and the damage
• ✓ the damage can be attributed to you

All elements must be present to establish liability.

Common situations for entrepreneurs

Non-contractual liability occurs, among other things, in:

• ✓ damage caused by staff or hired workers
• ✓ incorrect, incomplete or misleading professional advice
• ✓ damage to property of customers, suppliers or third parties
• ✓ dangerous situations on business premises or during work

Burden of proof and legal discussion

The injured party must prove that your actions were unlawful and led to damage. In practice, this often leads to complex discussions about causality, attribution and the extent of damage.

Underestimated risk

Many entrepreneurs think that liability only applies to contracts. Non-contractual liability often leads to unexpected claims and proceedings.