Understanding Intentional Interference with Contract: A Legal Overview

Definition & Meaning

Intentional interference with contract refers to a legal claim that arises when one party intentionally disrupts the contractual relationship between two other parties. This disruption can lead to a breach of contract, causing economic harm to the affected party. The interference must be deliberate, meaning the acting party must have intended to cause the disruption, rather than simply engaging in lawful activities that unintentionally result in a breach.

Table of content

Real-world examples

Here are a couple of examples of abatement:

(hypothetical example) A company learns that one of its employees is planning to leave for a competitor. The competitor knowingly offers the employee a higher salary to induce them to breach their existing contract. As a result, the original company suffers financial losses due to the sudden departure.

State-by-state differences

State Key Differences
California Requires proof of specific intent to interfere.
New York Allows claims for both existing and prospective contracts.
Texas Focuses on the reasonableness of the interfering party's actions.

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

Comparison with related terms

Term Definition Key Differences
Inducing Breach of Contract Encouraging a party to break a contract. Focuses specifically on breach rather than interference.
Interference with Economic Relations Disrupting business relationships or potential contracts. Broader scope, can include non-contractual relationships.

What to do if this term applies to you

If you believe you are a victim of intentional interference with contract, consider the following steps:

  • Gather evidence of the contract and the interference.
  • Document any economic harm you have suffered.
  • Consult with a legal professional for tailored advice.
  • Explore US Legal Forms for templates that may assist in your situation.

Quick facts

  • Typical fees: Varies by attorney and case complexity.
  • Jurisdiction: Civil courts.
  • Possible penalties: Damages for economic loss.

Key takeaways

Frequently asked questions

It is a legal claim that arises when one party intentionally disrupts the contractual relationship between two other parties.