inducing breach of contract

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:
  1. (i) direct persuasion
  2. (ii) direct intervention
  3. (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.

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References in periodicals archive ?
Both the majority and Kiefel J maintained that the action per quod was supported by analogy with the tort of inducing breach of contract.
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).
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.
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.
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.
In January 1995, the company responded to the boycott by launching a lawsuit against the Friends of the Lubicon, alleging defamation, intimidation, misrepresentation, inducing breach of contract, and "secondary picketing" (a statute under Canadian labor law that prevents striking workers from protesting at a company's suppliers).