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Business law – Negligence

This resource introduces you to the language and vocabulary of negligence law. It provides practice activities as well as a case study exercise.

Glossary of negligence terms

The following glossary of negligence terms will help you fully understand the tort of negligence. After you have studied the terms and their definitions, you can complete the practice activity.

Terms Definition
party individuals involved in a legal case
duty of care legal obligation to be careful in circumstances where harm to another may occur
tort civil wrong on a person caused by the actions of another person
breach breaking/neglecting a legal obligation
damages compensation in money to a party who has been wronged in a civil case
liable the person who has been found responsible for a civil wrong
sue to take legal action against another party in a civil dispute
defences arguments/reasons put forward in a court by the defendant in a negligence case to reduce or avoid a payout to the plaintiff
reasonable person a person of normal intelligence and skill who should act in accordance with community standards
scope of liability the actual loss or injury suffered by the plaintiff must have been reasonably foreseeable to the defendant
causation the plaintiff must show that the type of damage suffered was a direct result of the defendant's actions
proximity nearness or closeness
foresee/foreseeable a reasonable person should realise the danger involved in certain actions
likelihood whether or not injury is likely to occur in certain circumstances
gravity serious nature of an injury due to the defendant's actions

Read the following definitions and type the correct term into the text box. Correct spelling is required. Click on the ‘Check Answer’ button to check your answer.

Definition: Individuals involved in a legal case

Answer: party

Definition: The person who has been found responsible for a legal wrong

Answer: liable

Definition: Arguments/reasons put forward in a court by the defendant in a negligence case to reduce or avoid a payout to the plaintiff

Answer: defences

Definition: The particular damage suffered by a plaintiff must be closely related to the defendant’s action

Answer: remoteness

Definition: The plaintiff must show that the damage suffered was a direct result of the defendant’s actions

Answer: causation

Definition: The serious nature of an injury due to the defendant’s actions

Answer: gravity

Negligence concept map

This negligence concept map will help you to explore sequence, order or break down information into its constituent parts.

Negligence diagram: Tort, Definition, Elements, Defences, Damage.

1. Tort

Tort means civil wrongs, that is, where one person is harmed by the actions of another (not arising from contract).

2. Definition

Negligence means the failure of a person to take care which leads to injury (or pure economic loss) to another.

3. Elements

To successfully lodge a claim of negligence against another party, three elements must be proven:

  1. Duty of care (two-stage test):
    Does the relationship between the parties fall within an established category?
    • Reasonable foreseeability
    • Salient features
  2. Breach of duty:
    Reasonable person test (special skills)
    Negligence calculus
    • Likelihood of injury
    • Gravity of injury
    • Effort required to remove the risk
  3. Damage:
    • Causation - 'But for test'
    • Scope of liability

4. Defences

Someone who has to defend a negligence claim can argue that the plaintiff contributed to their own injury (contributory negligence) or that they were fully aware of all the risks involved in their actions (voluntary assumption of risk).

5. Vicarious liability

An employee is held responsible for their employee's negligence.

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