Interference with Business Relations

Business torts, also referred to as economic torts, are tortious interference actions that are designed to protect trade or business. These types of torts can be placed in one of several categories, including, but not limited to:

Tortious interference with a contract occurs when a third party intentionally causes a contracting party to commit a breach of contract. It may also occur when a third party disrupts the ability or one party to perform their obligations under the contract.

As a result of these actions, the plaintiff does not receive the performance that was promised under the terms of the contract. In order to prove tortious interference occurred, a plaintiff must show:

Injurious falsehood arises when an individual makes an intentionally false statement in order to cause damage to another. This is classified as a business tort because the false statement is intended to damage an individual’s business reputation.

The plaintiff must prove there was malice. This can be done by showing that the tortfeasor knew the statement was false when it was made.

Tortious interference with business relations is explained below.

  1. What Is Interference with Business Relations?
  2. What Are the Elements Required to Prove Interference with Business Relations?
  3. What Are the Available Remedies for Interference with Business Relations?
  4. Do I Need a Business Lawyer?

What Is Interference with Business Relations?

Tortious interference with business relations arises before a contract is formed between two parties. The intentional interference with business tort may also be referred to as tortious interference of business or interference with prospective contracts.

Generally, business relationships may be based on contracts. However, in many cases, these relationships are formed based on an oral agreement or a history of prior dealings between the parties.

Therefore, interference with business relationships may involve a breach of contract but may also include a variety of unfair business acts or practices. The main difference between tortious interference with contract and tortious interference with business is that, in the first, a valid contract already exists and the second may be based on a prospective contract or the relationship between the parties.

When interference with business relations occurs, the tortfeasor prevents the plaintiff from successfully establishing or maintaining a business relationship with a third party. This conduct causes the third party not to establish a relationship with the plaintiff when they otherwise would have.

The conduct of the tortfeasor must be intentional. The plaintiff is also required to prove that the business relationship would have happened but for the conduct of the tortfeasor, which may be difficult.

There are several elements that a plaintiff will be required to prove to show tortious interference. These elements are discussed below.

What Are the Elements Required to Prove Interference with Business Relations?

It is important to note that interference with business relationships is often more difficult to prove than interference with a contract. This is due to the fact that it may be difficult to establish whether a valid business relationship actually existed.

In order to prove wrongful interference with a business relationship, the majority of jurisdictions require a plaintiff to prove the following elements: