Wrongful interference with a contractual relationship requires the existence of which of the following?
A. A legally enforceable contract between two parties
B. A negligent breach of duty by a third party
C. A valid contract and intentional interference by a third party
D. Malicious intent by one of the parties to the contract
E. A public interest conflict in the agreement terms
The Correct Answer and Explanation is:
Correct Answer: C. A valid contract and intentional interference by a third party
Explanation:
Wrongful interference with a contractual relationship, also known as tortious interference, is a legal tort that arises when a third party unlawfully interferes with the contractual or business relationships between two other parties. For a plaintiff to succeed in such a claim, certain legal elements must be proven.
First, there must be a valid, legally enforceable contract between two parties. This means that the agreement must meet all the standard contract requirements, including offer, acceptance, consideration, and mutual intent to be bound.
Second, the defendant (third party) must know that this contract exists. Without knowledge of the agreement, interference cannot be considered intentional or wrongful.
Third, the defendant must intentionally interfere with the contract. This means their actions are deliberate and specifically aimed at causing one of the parties to breach or disrupt the contract. This could involve persuading a party to terminate the agreement or to not fulfill their contractual duties.
Fourth, actual damage or loss must occur as a result of this interference. If the contract remains intact and unbreached, or if no harm occurs to either party, then a claim is unlikely to succeed.
Malicious intent (Choice D) may be present, but it is not required. What is essential is that the interference is intentional and without justification. Choice E is irrelevant, and Choice B misrepresents the nature of the tort, which is not about negligence.
This tort serves to protect contractual relationships and ensure that third parties do not unjustly disrupt lawful agreements. Courts often scrutinize such claims closely to balance free competition with contractual integrity.