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Tort of Intentional Interference with Prospective Economic Advantage
Understanding the Tort of Intentional Interference with Prospective Economic Advantage
Definition & Meaning
The tort of intentional interference with prospective economic advantage occurs when one party intentionally disrupts another party's potential economic relationships with third parties. This legal concept is designed to protect the trust and confidence inherent in these relationships, ensuring that individuals can pursue economic opportunities without unwarranted interference.
Table of content
Legal Use & context
This tort is primarily used in civil law cases where a party claims that their economic relationships have been harmed due to another party's wrongful actions. It often arises in business contexts, such as when a competitor intentionally sabotages a business relationship. Users can manage related legal matters using templates from US Legal Forms, which are designed by qualified attorneys.
Key legal elements
Real-world examples
Here are a couple of examples of abatement:
Example 1: A company learns that a competitor is trying to convince its clients to switch their business. If the competitor uses deceitful tactics to persuade these clients, the original company may have grounds for a claim of intentional interference.
Example 2: A real estate agent intentionally spreads false information about another agent to dissuade potential buyers from working with them, causing economic harm to that agent. (hypothetical example)
State-by-state differences
State
Key Differences
California
California recognizes this tort and has specific case law that outlines its elements, as seen in Buckaloo v. Johnson.
New York
New York also recognizes this tort but may apply different standards regarding what constitutes intentional interference.
Texas
Texas law has similar principles but may have additional requirements for proving damages.
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
Tortious interference with contract
Interference with an existing contract between two parties.
This tort applies to established contracts, while intentional interference with prospective economic advantage deals with potential future relationships.
Defamation
False statements that harm a person's reputation.
Defamation focuses on reputation, whereas intentional interference focuses on economic relationships.
Common misunderstandings
What to do if this term applies to you
If you believe you are a victim of intentional interference with prospective economic advantage, consider the following steps:
Document any evidence of the economic relationship and the actions taken by the defendant.
Consult with a legal professional to evaluate your case and determine the best course of action.
Explore US Legal Forms for templates that can assist you in filing a claim or managing your legal needs.
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