General Insurance✓ Verified · outline & fact-checked · Sep 2026Difficulty 1/5
Which statement correctly distinguishes a contract from a tort?
Select an option to reveal the answer and the full 3-part explanation — free, no signup.
Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Contract obligations are voluntarily created - the parties agree to exchange promises and duties. Tort duties, by contrast, are imposed by law on everyone: the duty not to injure others through negligence or intentional wrongdoing. An insurance policy is a contract, so its obligations flow from the agreed terms; a negligent act that harms another may create tort liability independently of any agreement.
Why the other options are wrong
- B) This reverses the definitions: contracts are voluntary, torts are imposed by law.
- C) Only some contracts must be in writing; tort obligations require no writing at all.
- D) Torts are civil wrongs, not crimes, and courts routinely enforce contracts by awarding damages.
Memory hook
Contracts = agreed. Torts = imposed. Insurance disputes live in contract territory.