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Tortious Interference with Contract
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Valid Contract
A requirement for tortious interference is an existing and valid contract between two parties. In litigation, this is used to show that the contract was legally binding and could be interfered with. Example: A sues B for tortious interference, presenting the signed sales agreement as evidence of a valid contract.
Defendant's Knowledge of Contract
The plaintiff must prove that the defendant knew of the contract's existence. In litigation, they might present emails or testimony to demonstrate this awareness. Example: Emails from B to C discussing A's business dealings indicate B knew of A's contract.
Intentional Interference
It must be shown that the defendant intentionally acted to disrupt the contract. In litigation, bad faith actions or predatory behavior are presented as evidence. Example: B's aggressive pricing aimed at diverting customers from A can demonstrate intentional interference.
Causation
There must be a causal link between the defendant’s actions and the contract breach. In litigation, this requires showing a direct connection. Example: A's lost profits following B's poaching of a key client could show causation in a contract breach.
Damages
The plaintiff has suffered actual damages as a result of the interference. In litigation, quantifiable loss must be demonstrated through financial records. Example: A presents sales records pre- and post-interference to calculate the monetary loss from B's interference.
Improper Action
The defendant's actions must be shown to be improper or wrongful by some measure. In litigation, a violation of industry standards or unethical behavior can support this. Example: B knowingly spreads false information about A's product, which is an improper tactic.
Absence of Justification
Plaintiff must demonstrate that the defendant had no legal justification for their interference. In court, B's inability to show a legitimate competitive purpose in their actions would be pertinent. Example: B cannot justify spreading falsehoods about A's product as a legitimate business strategy.
Specific Intent to Induce Breach
The plaintiff needs to show that the defendant intended to cause a breach of contract. In litigation, this might be demonstrated through evidence of targeted communications or actions taken by the defendant. Example: B specifically advises A's client to terminate their contract, showing intent to induce a breach.
Privilege or Immunity
Defendants might assert privilege or immunity as a defense. In litigation, B arguing they were acting to protect a legitimate interest, like free speech, could establish privilege. Example: B's negative review of A's product based on fact might be privileged as an opinion.
Mitigation of Damages
The plaintiff is obligated to mitigate the damages resulting from the interference. During litigation, A would need to show reasonable steps taken to minimize losses. Example: A finds a replacement client shortly after B's interference to reduce the economic impact.
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