Which laws establish liabilities between participants in a contract?

• A. Criminal Law
• B. Tort Law
• C. Contract Law
• D. Regulatory Law

Answer: (C)

Liability in a contract comes from the promises and duties created by the agreement itself. Contract law defines what each party is obliged to do, what counts as a breach when those obligations aren’t met, and what remedies (like damages or specific performance) are available to the non-breaching party. It provides the framework for enforcing and seeking redress specifically for failures to keep contractual promises.

Criminal law deals with acts that violate statutes and the penalties for those crimes, not the civil consequences of breaking an agreement. Tort law covers civil wrongs causing harm outside of contractual obligations, such as negligence or intentional harm, and it provides remedies for those harms independent of any contract. Regulatory law sets rules imposed by governments to govern behavior in particular industries or activities, focusing on compliance rather than private contract liabilities.

So the liability between participants in a contract is established by contract law.