Tortious Interference with Contracts Simplified

Author: Mesriani Law Group
Posted on: May 15, 2021

By definition, a “contract” is an agreement between two or more private parties under mutual obligations enforceable by law. For it to be valid, a contract must have lawful grounds and be collaborated by parties who can legally enter into contracts.  Predominantly contracts are used in business and used as a guarantee or a safe key in ensuring the success of the agreed settlement. However, what if the contract that you worked hard for is compromised and stolen for the benefit of someone else?

This kind of conduct is recognized as tortious interference in California.

What is Tortious Interference with Contract?

Tortious interference with a contract takes place when someone wrongly provokes a breach of contract between you and a third party.

For instance, party A and party B have a signed purchase order to be delivered in a few weeks. Then party C approaches party A and offers a lower price and quicker delivery time if party A will terminate the contract with party B. Thus, contract with party B was dismissed.

In this instance, party C’s action breaks up an existing contract between two parties, this constitutes tortious interference with the contract.

How Do You Prove Tortious Interference with a Contract?

A plaintiff must establish several elements to prove tortious interference with a contract, namely:

  • possession of a valid contract with the other party;
  • acknowledgement of the other party about the contract at the time of the alleged interference;
  • intentional interference of the third party preventing fulfillment of the contract or possible bidding making the contract expensive and inconvenient; and
  • third party’s execution of grievance to the other party.

Having these elements settled, you will be entitled to compensation for damages that you sustained from the breach of contract.

Each business has its way to thrive and survive, but there is a difference between being competitive from being deceitful to obtain a contract. Without crossing the line can be difficult at times especially with the current situation brought about by the pandemic, but by understanding the factors that result in tortious interference claims, any business or business owner can make sure they’re doing what is right.

Do You Need An Attorney?

If you perceive that you had tortious interference with a contract in California, contact Mesriani Law Group today. We assure you that our experienced Los Angeles attorneys can obtain the maximum compensation for your claim and offer a “No Win, No Fee” agreement.