Interference with Contractual Relations

Question 1

IWCR - Prima Facie Tort Approach

Answer 1

A contract was interfered with
o By unlawful means such as libel, slander, fraud, physical violence, or threats
o Most jurisdictions recognize inducement of breaching a contract by the use of moral, social, or economic pressures
o These breaches may be justified if the enforcement of the contract would be injurious to health, safety, and good
morals
Competition with another with a desire to further your own economic advantage is not a valid reason for inducing a breach

Question 2

Prima Facie Test

Answer 2

Plaintiff must prove:

         (1) Existence of a contractual or business relationship or expectancy
         (2) Defendant had knowledge the contract existed
         (3) an intentional act of interference by a third-party
         (4) proof that the interference caused the harm
         (5) damages

Question 3

Proper/Improper Interference

Answer 3

Proper Int.
o Providing a company with truthful information
o Honest advice within the scope of a request for the advice

Question 4

Privileges and Justifications

Answer 4

Proper prospective contract interference
- The relation concerns a matter involved in the competition between the actor and the other
- The actor does not employ wrongful means
- His action does not create or continue an unlawful restraint of trade
- His purpose is at least in part to advance his interest in competing with the other
- Does not improperly interfere if they have a financial interest in someone else’s business, if they are responsible for the
welfare of another, or respond honestly to a request for advice or information

Question 5

Improper Purpose/Means Test

Answer 5

Requires “intentional[ity] and improper” interference
Employing wrongful means to pursue economic gain at the expense of another
Wrongful means = Independently Tortious Actions

Question 6

Decoupling the Interference Torts - Interference with Contract v. Interference with Prospective Contract

Answer 6

A prospective contract interference claim requires proving the interference was wrongful by some measure beyond the interference itself
An existing contract interference claim requires
(1) a valid contract exists between parties
(2) defendant had knowledge of this contract
(3) defendant’s intentional acts designed to induce a breach or disruption of the contract
(4) actual breach or disruption of the contract
(5) resulting damages

Question 7

DTIT - Interference with Contract v. Interference with Contract Terminable at Will

Answer 7

Similarly to a prospective contract, you must prove someone intentionally interfered with your terminable at will contract through the use of wrongful means or improper methods