Breach and Interference of Contract

Breach and Interference of Contract

Breach and Interference of Contract

Almost every adult will have had to sign a contract at some point in their life. There are various types of contracts for different needs but put simply, the main goal of a contract is to ensure that people agree to something/terms and know of their responsibilities and duties. Contracts can get much more complicated and there can be repercussions for failing to perform the contract, especially if a party intentionally interferes or breaches the contract.


Inducing Breach of Contract

A plaintiff can bring forth a claim of inducing breach of contract against a defendant who induced a third party to breach. The claim must prove that the plaintiff had a valid contract with the third party and that the defendant knew the contract existed. The defendant must have then induced the third party to breach the contract, who then did so, which then led to compensatory damages. The plaintiff has to show that the contract was in fact breached by the third party and that the defendant induced it.


Intentional Interference with Contractual Relations

In this situation, there was intentional interference with the performance of the contract and, as a result, the plaintiff seeks to recover damages. Similar to inducing breach of contract, the plaintiff has to prove that they had a valid contract with a third party, which the defendant knew about. However, in intentional interference, the defendant must have then intentionally tried to disrupt carrying out the contract or knew their actions would result in disruption. As a result, the contract could have been interfered with or made more difficult to perform.


Some Notes

The valid contract discussed previously does not have to be in writing. Unless the law requires the contract to be written out, a verbal contract also constitutes a valid one. The damages that can be recovered under either claim include those for expenses and injury. If you are seeking to bring forth a claim for inducing breach of contract or intentional interference, it is recommended to speak with an experienced lawyer as the issues involve complex legal topics.


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