inducing breach of contract

a form of ECONOMIC TORT consisting in A knowingly and unjustifiably inducing B to breach his contract with C, causing loss to C. The law generally permits considerable freedom in economic matters but draws lines at certain conduct attacking certain economic interests. Attempts have been made to classify the kind of conduct that will legally amount to interference into:

(i) direct persuasion
(ii) direct intervention
(iii) indirect intervention.

It may be that this tort has extended to become a tort of unlawful interference in contract that would not require the need to show a breach, but it is difficult to be certain about the precise boundaries of any of the economic torts.

Collins Dictionary of Law © W.J. Stewart, 2006

Mentioned in

economic torts

References in periodicals archive

Rangers' counsel Kenny McBrearty QC told the Court of Session in Edinburgh a letter sent to Greig had indicated a potential claim for inducing breach of contract.

Ibrox row lawyers deny intimidating witnesses

Both the majority and Kiefel J maintained that the action per quod was supported by analogy with the tort of inducing breach of contract. (34) It is hard to see how this could be the case, however.

Barclay v Penberthy and the collapse of the High Court's tort jurisprudence

In addition to the claims based on the tort of inducing breach of contract, a series of complex claims in relation to contract (including breach and rescission) was made: Stocznia Gdanska [2002] 2 All ER (Comm) 768, 783-96 (Rix LJ).

Sidestepping limited liability in corporate groups using the tort of interference with contract

Leeds said in a statement: "Formal claims were made by Rhinos against Iestyn Harris for breach of contract and against Bulls for inducing breach of contract.

Rugby League: Leeds take Iestyn and Bulls to court

In a statement, Leeds said, 'Formal claims were made by Rhinos against Iestyn Harris for breach of contract and against Bulls for inducing breach of contract.

Leeds go to court over Harris

In that case, which involved political expression through a consumer boycott, the Charter values approach led to a substantive change in outcome from that dictated by strict application of the economic torts such as inducing breach of contract. Reference must also be made to the Supreme Court's decision in Retail, Wholesale and Department Store Union, Local 558 v.

Human Rights in Private Law