Define: Tortious Interference With Contractual Relations

Unlawful interference with contractual relations, also known as interference with a contractual relationship or inducement of breach of contract, occurs when someone intentionally persuades one party to violate a contract with another party, resulting in harm to the relationship between the two parties. This can be likened to a situation where someone convinces your friend to break a promise they made to you, leading to difficulties in your friendship.

Tortious interference with contractual relations occurs when a third party intentionally persuades one of the parties in a contract to violate the agreement, resulting in damage to the relationship between the parties. This is also referred to as unlawful interference with contractual relations, interference with a contractual relationship, interference with contract, inducement of breach of contract, or procurement of breach of contract. For instance, if a company hires an employee who has signed a non-compete agreement with their previous employer, and the previous employer contacts the new company and convinces them to break the contract with the employee, causing harm to the relationship between the employee and the new company, it is an example of tortious interference with contractual relations. In this case, the previous employer deliberately interfered with the contractual relationship between the new company and the employee by inducing the new company to break the non-compete agreement, resulting in harm to the relationship between the employee and the new company. The previous employer could be held accountable for tortious interference with contractual relations.

Tortious interference with prospective advantage is when a third party intentionally interferes with another’s potential business relationship, such as the opportunity to obtain customers or employment, resulting in damage to the potential business relationship. This is also known as interference with a business relationship. For example, if a company is in negotiations with a potential client to provide services, and a competitor contacts the potential client and convinces them not to do business with the company, causing harm to the potential business relationship, it is an example of tortious interference with prospective advantage. In this case, the competitor intentionally interfered with the potential business relationship between the company and the potential client by persuading the client not to do business with the company, resulting in harm to the potential business relationship. The competitor could be held liable for tortious interference with prospective advantage.

Tort reform is a movement aimed at reducing the amount of tort litigation, usually through legislation that restricts tort remedies or caps damages awards, particularly for punitive damages. For instance, if a state passes a law that limits the amount of damages that can be awarded in a medical malpractice lawsuit, it is an example of tort reform. In this case, the state passed a law that restricts the amount of damages that can be awarded in a medical malpractice lawsuit, which is an example of tort reform. The goal of tort reform is to reduce the amount of tort litigation, prevent windfalls for plaintiffs, and lower insurance and healthcare costs.

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This glossary post was last updated: 17th April 2024.