Definition
A civil-wrong concept defining liability rules for compensating harm or preventing wrongful interference with protected interests. It specifies required elements such as duty, prohibited conduct, causation, and legally cognizable harm or defines protection of commercial and intangible interests where applicable. It does not impose liability where the required element set is not satisfied or where recognized privileges or defenses apply. It allocates responsibility for injury or interference and shapes the scope and measure of monetary and equitable relief. The concept is generally stable, though doctrinal refinements and statutory updates may alter elements or defenses over time.
Principle
Principle
Liability requires knowledge of the contract, intentional inducement or improper means of interference, causation of breach or disrupted performance, and resultant damages; lawful competition and legitimate persuasion are not actionable.
Demonstration
Demonstration
A competitor knowingly persuades a supplier to breach an exclusive supply contract with a rival by making false promises and using threats; the supplier breaches, and the rival sues the competitor for the economic losses caused by the interference.
Misapplication
Misapplication
Attempting to use the tort to punish vigorous but lawful competitive behavior, to challenge ordinary contract negotiations absent improper means, or to sue when the putative interferer lacked knowledge of the specific contract.
Consequence
Consequence
Successful plaintiffs may recover compensatory damages for lost profits and consequential losses and may obtain injunctive relief to prevent continuing interference; malicious or reckless interference can attract punitive damages in some jurisdictions.
Reversal
Reversal
The converse protects free market activity: where the actor's conduct is lawful, competitive, and not improper, interference does not give rise to liability; protection of legitimate commercial freedoms limits the tort’s reach.
Boundary
Boundary
Requires a third‑party actor distinct from the contracting parties; does not replace remedies for breach of contract between parties themselves, and often excludes interference claims in contexts where at‑will employment or statutory preemption applies.
Semantic Tension
Semantic Tension
Tension exists between protecting contractual stability and preserving lawful competition and free speech; courts balance remedies against chilling legitimate commercial negotiations and communications.
Synthesis
Synthesis
Tortious interference with contract is a civil remedy against third parties who, with knowledge and improper means, disrupt existing contractual relations causing measurable loss, while lawful competitive conduct remains outside its scope.