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Factors used to determine tortious interference with contracts

On Behalf of | Apr 4, 2019 | Business Torts |

One of the basic principles of the economy in Florida is that there is competition. Therefore, there are many businesses who offer the same or similar services and products. This gives consumers choices to pick the product that best fits their needs and budgets. It also creates competition between companies to produce better products or services at competitive prices. However, this competition can also cause companies to try to gain an advantage over other companies any way possible.

This can include doing things outside the bounds of fair competition. One way companies do this is through tortious interference with contracts. This is essentially intentionally inducing a person to break a contract with a third party, which causes the company to suffer economic damages. There are certain factors that one must prove though in order demonstrate that there was in fact tortious interference. One of these factors is that the interference with the contract was improper.

In determining whether the interference was improper, there are a number of factors to consider. Courts will analyze the type of conduct, the motives of the company interfering and the interests of the interfering party as they relate to the interests of all parties to the contract. The courts will also look at how the interfering party’s actions related to the interference with the contract and the damages caused by the actions. After analyzing these factors, the courts must determine whether the interfering party had legitimate reasons for their actions or whether they were improper.

Companies in Florida enter into contracts every day for many different reasons. These contracts can be very lucrative for both parties. This means that other companies may want the business benefits related to the contract and interfere with it to obtain those benefits. This interference could be deemed tortious interference if certain factors are met. These are very fact-specific cases, so consulting with experienced attorneys may be beneficial.