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What is tortious interference of contract?

| Jan 6, 2017 | Uncategorized |

Contracts are an important element of your Las Vegas business. They can affect everything from your employees’ job descriptions to doing business with third parties. If a contract is breached, it can negatively affect your business. In some cases, contracts are broken by accident – the other party might not understand the terms of a contract or could mistakenly make a business decision without regard to an existing agreement with your company. In these cases, an accidental contract breach might be easily rectified. In other instances, however, someone might purposefully break a contract or interfere with another party’s business with you. If this happens, you might have cause to take legal action.

Intentionally causing someone to break a contract is known as tortious interference of contract, states Cornell University Law School’s Legal Information Institute. This might occur if someone tried to harm your business through a contract breach, especially by influencing or coercing a third party into breaking a contract. For example, a competitor who is trying to undermine your business might charge one of your subcontractors far less for a service than you are currently charging under contract. This person might interfere in such a way that you are unable to perform your end of an agreement, such as tampering with a product delivery or preventing communication. It would also not be unheard of for another party to use blackmail or threats to induce a business associate to break a contract with you.

Understandably, this area of contract law is complex, which is why this information should not replace the advice of a lawyer.


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