Understanding Civil Causes of Action - Intentional Interference with Contract

Definition & Meaning

The term "intentional interference with contract" refers to a legal claim made when one party intentionally disrupts another party's contractual relationship. This disruption can lead to damages for the affected party. The claim is rooted in the idea that contracts should be honored and that third parties should not interfere with the fulfillment of those agreements.

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Real-world examples

Here are a couple of examples of abatement:

Example 1: A company learns that a competitor is trying to lure away its employees by offering them better contracts. If the competitor knowingly interferes with the existing contracts of these employees, the company may have grounds for a claim of intentional interference with contract.

Example 2: A landlord has a lease agreement with a tenant. If a third party persuades the tenant to break the lease, knowing that the tenant is bound by it, the landlord may pursue legal action against that third party for interference. (hypothetical example)

State-by-state differences

State Key Differences
California Requires proof of intentional acts and knowledge of the contract.
New York Focuses on the defendant's intent and the nature of the interference.
Texas May allow claims for both existing and prospective contracts.

This is not a complete list. State laws vary, and users should consult local rules for specific guidance.

Comparison with related terms

Term Definition
Intentional Interference with Contract Disruption of an existing contract by a third party with knowledge and intent.
Intentional Interference with Prospective Economic Advantage Interference with a potential business relationship without needing to prove intent to disrupt.

What to do if this term applies to you

If you believe that your contractual relationship has been intentionally disrupted, consider the following steps:

  • Document all relevant communications and actions related to the interference.
  • Consult with a legal professional to assess your case and explore your options.
  • Utilize US Legal Forms to find templates that can help you file a claim or respond to interference.

Quick facts

  • Typical damages can include lost profits and other economic losses.
  • Jurisdiction typically falls under civil court systems.
  • Possible penalties may involve compensatory damages awarded to the affected party.

Key takeaways

Frequently asked questions

It is a legal claim made when one party intentionally disrupts another party's contractual relationship, leading to damages.