If you have heard the term business tort, you may have wondered what it refers to. Business torts, and torts in general, describe legally recognized wrongs one party may commit against the other. In general, damages may be owed when one party commits a business tort against the other party such as intentionally interfering with the party’s business and contractual relationship with a third party.
A successful claim for interference with contractual relations requires that several elements are met. The elements include that a valid contract existed between the party claiming their contract relationship with interfered with and a third party; that the party that allegedly interfered with the contract had knowledge of the contract, thereby knowingly interfering with the contract relationship; that the party alleged to have interfered with the contract acted intentionally and improperly; and that the party asserting that their contract relationship was interfered with was harmed.
The party claiming the harm must have suffered some damages as a result of the intentional interference with contractual relations to receive compensation through the process of bringing a claim. Most commonly, the party bringing the claim will have suffered financial loss. In addition, the party bringing the claim for damages must demonstrate the interference while the party accused of interfering does not have the burden to claim the actions they took were justified or proper.
Business torts can be a complex, yet important, area of the law, especially for companies and businesses who have suffered harm because of the tortious actions of another party. It is important for those engaged in business relationships to be familiar with business torts, how they protect them and what to do if they have suffered harm because of one.
Source: Cornell Law School Legal Information Institute, “Intentional interference with contractual relations,” Accessed July 26, 2017