Intentional Interference with Contractual Relations
Intentional interference with contractual relations, also known as tortious interference with contract, is a common law tort allowing a party to recover damages when someone intentionally disrupts a contractual relationship causing one of the parties to suffer a loss. This tort aims to protect contractual relationships from outside parties who, without proper justification, cause one party to breach the contract or hinder the relationship established by the contract.
Establishing a Claim
To establish a claim for intentional interference with contractual relations, a plaintiff must prove several key elements. These elements serve as the foundation for understanding the nature of the tort and are essential for a successful claim.
Existence of a Valid Contract
The plaintiff must first demonstrate the existence of a valid and enforceable contract between the plaintiff and a third party. This contract must be more than a mere agreement; it must meet all the legal criteria for enforceability, including offer, acceptance, consideration, and mutual intent to be bound.
Defendant’s Knowledge of the Contract
It is crucial that the defendant was aware of the contract at the time of the interference. The knowledge component does not require the defendant to know every term of the contract, but they must be aware that a contractual relationship exists. This awareness can be actual or constructive, meaning the defendant either knew for a fact or should have known through reasonable diligence.
Intentional Act of Interference
The defendant must have intentionally acted in a manner that caused a breach or disruption of the contractual relationship. This intentional act does not necessarily have to be illegal or wrongful in itself; however, it must be aimed, at least in part, at interfering with the contract. The intention here can range from a direct purpose to interfere to knowing that such interference is certain or substantially certain to occur as a result of their actions.
Actual Interference or Disruption of the Contract
The defendant’s actions must lead to actual interference with the contract. This means that the contractual relationship was in some way disrupted, hindered, or completely severed due to the defendant’s conduct. This could manifest as a breach of contract by the party bound to the plaintiff, or any other form of interference that prevents the contract from being fulfilled as intended.
Resultant Damage
Lastly, the plaintiff must have suffered actual damages as a result of the interference. These damages can be economic, such as lost profits or opportunities, or non-economic, such as reputational damage. The key is that these damages must be a direct result of the disruption of the contractual relationship.
Understanding these elements is crucial for anyone involved in a contractual relationship or in dealings that might affect others’ contracts. The protection of contractual bonds from unjustified external meddling is essential for the stability and reliability of business and personal agreements. However, it’s also important to note that not all interferences are unjustified; the law recognizes certain defenses like competition or the exercise of one’s own contractual rights, provided they are done in good faith.
Disclaimer: The content of this blog is intended solely for informational purposes and does not constitute legal advice. Legal issues are complex and individual; as such, if you seek guidance on a specific legal concern, please consult with a licensed attorney. Contact A.E.I. Law, P.C. at (888)-423-4529 for personalized legal counsel.
