Also known as: substantially contributes · substantially contributed · substantially contributing · substantial contribution · substantial factor
Written by attorneys · grounded in primary & secondary sources — see below
A factor or element that plays a significant role in producing a legal outcome such as a party's decision to assent, the occurrence of harm, or the creation of loss.
Sasha Stone reviewed financial projections from Summit Bank before signing a loan agreement. The bank had overstated its reserves in those documents. Stone decided to sign only after seeing the inflated figures, which later proved false. Her assent to the contract therefore rested on the misleading information.
Santiago Sanchez left a gas line unrepaired despite complaints. A third party later attached an illegal grill that sparked an explosion. The unrepaired leak intensified the blast and injured a nearby resident. The gas company's delay therefore operated as one of two independent forces that together caused the harm.
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Stephen Shaw, an employer, gave an employee authority over incoming checks. The employee forged an indorsement and deposited the instrument. Summit Bank paid the item in good faith. The employer's grant of responsibility made the forgery effective against it.
Sarah Sullivan failed to clear debris from a known slide area. A rockslide then blocked the road and a truck with worn brakes crashed into a stopped vehicle. Either condition alone would have produced the collision. The state's omission therefore counted as one of the forces that brought about the injuries.
Serena Soto left blank checks accessible without verification procedures. An employee used one to forge a signature and cash the instrument. Sterling Dynamics paid the item in good faith. Soto's lack of ordinary care therefore precluded her from asserting the forgery.
Sean Steele left a loose handrail unrepaired in a dimly lit stairwell. A student grabbed it during a fall caused by fatigue and a power outage. The rail detached and the student suffered chemical burns from a nearby experiment. The university's omission remained a substantial factor even though the precise sequence was unexpected.
The test permits liability when the actor's conduct is a significant factor even if another independent force would have produced the same harm. It applies when two sufficient forces operate concurrently. Courts and juries evaluate the number and effect of other contributing factors under Restatement (Second) of Torts § 433.
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No. The misrepresentation need only play a significant role in the decision. Other factors may also influence the party. The test focuses on whether the false statement contributed substantially to the manifestation of assent.
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The failure must have a sufficient causal link to the forgery or alteration. Negligence remote from the instrument itself does not meet the standard. Courts examine whether better care would have prevented the loss.
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