Tortious interference with contract is a legal term that refers to the intentional and unlawful interference with a contract between two parties by a third party. This interference can take many forms and can lead to significant damages for those whose contractual rights have been violated. Here are some examples of tortious interference with contract:
1. Inducing a Breach of Contract
One common form of tortious interference with contract is inducing a breach of the contract. This involves enticing one of the parties to the contract to break the terms of the agreement, whether through persuasion, coercion, or other means. For example, if a company convinces one of its suppliers to stop doing business with one of its competitors, it could be held liable for tortious interference with contract.
2. Interfering with Performance
Another form of tortious interference with contract involves interfering with the performance of the contractual obligations. This can include disrupting communication between the parties, withholding important resources, or taking actions that make it impossible for one or both parties to perform their duties. For example, if a contractor blocks a construction site to prevent a subcontractor from performing its work, it could be held liable for tortious interference.
3. Threatening Legal Action
Simply threatening legal action against one of the parties to a contract can also be considered tortious interference with contract. This can occur when a third party who is not a party to the contract threatens to sue one of the parties for breach of contract, even if they have no legal basis for doing so. This threat can cause one party to back out of the contract, effectively interfering with its performance.
4. Offering Unfair or Illegal Incentives
Finally, offering unfair or illegal incentives to one of the parties to a contract can be considered tortious interference. This can include offering bribes, kickbacks, or other forms of compensation that are not authorized by the contract. For example, if a company promises to pay a supplier more money if it stops doing business with a competitor, it could be held liable for tortious interference.
In conclusion, tortious interference with contract is a serious legal offense that can have significant consequences for those who engage in it. If you believe that your contractual rights have been violated by a third party, it is important to consult with an experienced attorney who can help you understand your legal options and protect your interests.