What is the test for determining whether a defendant is liable to a plaintiff in a motor vehicle accident for breach of contract?
Saskatchewan, Canada
The following excerpt is from Rivers v. George White & Sons Company, 1919 CanLII 247 (SK CA):
This theory has been rejected by later decisions, which established the principle that the defendant’s liability is not created by agreement, or quasi-agreement, but is imposed by law. A person contemplates the performance and not the breach of his contract; he does not enter into a kind of second contract to pay damages but he is liable to make good those injuries which he is aware that his default may occasion to the contractee. [Hydraulic Engineering Co v. McHaffie (1878) 4 Q.B.D. 670, 27 W.R. 221, per Bramwell, L.J., at p. 674.]
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