What is the Difference Between Contractual and Statutory Liability?

The legal system is fraught with different terms and definitions that are important in shaping the process as a whole. Regardless of the type of law being scrutinized it is always important to the parties involved to know what terms and definitions are in reference to. What follows is a general explanation of the difference between contractual liability and statutory liability and when each would apply. With this knowledge you can understand your legal situation a bit better.

Contractual liability is liability that arises out of a contract or agreement that was entered into by multiple parties. When you sign a lease to rent an apartment you are entering into a contract with the landlord of the apartment that stipulates the agreement between the two of you. The lease will contain the agreed upon amount you will pay every month for use of the apartment and the length that it is to be rented for. However, there are also other agreements listed in the lease that you may or may not be aware of.

For instance, most apartment lease contracts also have an agreement about accidents that happen in the apartment. Generally the owner of a building assumes liability for what happens in it, but leases will have a clause for the transfer of liability from the owner to the renter. This is contractual liability, liability that is agreed upon in a contract to fall on one person rather than another.

Statutory liability is the liability that comes from a particular statute or law that applies to society as a whole. The most important type of statutory liability law that applies to most individuals is that of liability in a car accident. When you are found negligent in a car accident it is due to the statutory liability guidelines that are set forth in a particular state. Insurance laws are regulated by state, as are safe driving laws, meaning the state governs how you drive.

Some states have specific laws that tell how a driver can and cannot drive in a given situation. For example, in Texas it is ok to drive on the shoulder as long as you are intending to make the next available right hand turn. This is not the law in most states as most states make it illegal across the board to travel on the shoulder. A statute like this would completely swing a statutory liability case from one side to the other.