Aldrich Law Firm, Ltd.
Aldrich Law Firm, Ltd.

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What is tortious interference of contract?

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.

John P. Aldrich
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