Civil liability in English law rests on two separate foundations: contract and tort. Most people encounter one without realising the other also applies. Understanding the difference — and when they overlap — shapes what you can claim, how much, and how long you have to do it.
What is a contract claim?
A contract claim arises when someone has broken a binding agreement. The parties must have freely agreed to the terms — you cannot be in contract with a stranger who never agreed to anything. The remedy in contract is designed to put you in the position you would have been in had the contract been performed — so you recover your expectation loss (the benefit you were promised) rather than just your out-of-pocket cost. The standard limitation period is six years from the date of breach under the Limitation Act 1980, s.5.
What is a tort claim?
A tort is a civil wrong imposed by law, independent of any agreement. The most important tort is negligence — a duty of care owed to you, breached, causing loss. Others include nuisance, trespass, defamation, and the economic torts. In tort, the remedy aims to put you in the position you would have been in had the tort not been committed — so you recover your actual losses, not the benefit you were expecting. The limitation period for personal injury is three years; for most other torts, six years.
When both arise from the same facts
A professional providing services under a contract — a solicitor, doctor, surveyor — owes both contractual duties (to perform the service with skill and care) and a tortious duty of care (the same standard, imposed by law independently of the contract). If they get it wrong, you can claim in either. Why does it matter? Mostly limitation. In contract, the clock starts when the breach occurred. In tort, it may start when you discovered the damage — which can be later. Sometimes one route gives more time, or recovers more losses than the other. Henderson v Merrett Syndicates [1995] 2 AC 145 confirmed that concurrent liability in contract and tort is possible and the claimant may choose whichever gives the better outcome.
Key practical differences
Who owes the duty: in contract, only the parties to the agreement; in tort, anyone who satisfies the duty of care test — including manufacturers to end-users, hospitals to patients, drivers to pedestrians. What you recover: contract compensates for the benefit promised; tort compensates for the harm done. Defences: contributory negligence reduces tort damages; it generally does not reduce contract damages. Time limits: contract from breach; personal injury tort from date of knowledge. The full limitation table is in the Limitation Act 1980, Part I.
What this means when you have a dispute
If a builder did poor work on your home, you have a contract claim (breach of the implied term of reasonable skill and care under the Consumer Rights Act 2015) and potentially a negligence claim if their work caused physical damage. If a stranger's negligent driving injures you, you have only tort — you have no contract with them. Understanding which claim applies points you to the right limitation period, the right remedy, and the right guide to follow. The glossary entry on limitation periods explains how the clock runs for different claim types.