Interference with contract, also referred to as tortious interference with contractual relations, occurs when an individual’s actions hinder or create obstacles for two parties in fulfiling their agreement or contract.
Interference with contract, also known as tortious interference with contractual relations, is the deliberate act of inducing one party to violate a contract with another party. To illustrate, suppose Company A has a service contract with Company B, but Company C persuades Company B to terminate the contract and collaborate with them instead. In this scenario, Company C may be held accountable for interfering with the contract. Similarly, if a third party convinces an employee to breach their employment contract and work for them instead, it constitutes interference with contract. These instances demonstrate how such interference can detrimentally impact the party that relied on the contract, leading to financial losses, damage to reputation, and other adverse consequences.
Interference with contract refers to the intentional or negligent actions of a third party that disrupt or prevent the performance of a legally binding contract between two parties.
To prove interference with contract, the following elements must be established:
Knowledge of the contract by the interfering party
Damages suffered by the non-breaching party as a result of the interference
Yes, interference with contract can be either intentional or negligent. Intentional interference occurs when a third party purposely disrupts the contract, while negligent interference occurs when a third party’s actions unintentionally lead to the contract’s breach.
Yes, an employee can be held liable for interference with their employer’s contract if they intentionally or negligently interfere with the contract’s performance. However, the employer may also be held vicariously liable for the actions of their employees.
Yes, a non-party to the contract can be held liable for interference if they intentionally or negligently interfere with the contract’s performance and cause damages to the non-breaching party.
The available remedies for interference with contract may include:
Injunctive relief to prevent further interference
Specific performance to enforce the contract
This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.
This glossary post was last updated: 17th April 2024.
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