Intentional Interference with Contract

Intentional Interference with Contract in United States

Intentional Interference with Contract 

The tort of intentional interference with contract grew out of the tort of ‘inducing breach of contract.” (Seaman’s Direct Buying Service Inc. v.Standard Oil Co. (1984) 36 Cal.3d 752, 765.) and is in fact one type thereof.

Essentially this tort remedies situation where a contract has been formed but is repudiated because of the tortious interference of the defendant.
See, e.g. Builders Corporation ofAmerica v. U.S. (N.D.Cal.’57 148 F.Supp. 482, 484, fn. 1, revd. on other grounds (9th Cir.’58) 259 F.2d 766, see also Pacific Gas & ElectricCo. v. Bear Stearns & Co.(1990) 50 Cal.3d 1118, 1126.)

‘The actionable wrong lies in the inducement to break thecontract or to sever the relationship, not in the kind of contract or relationship so disrupted, whether it is written or oral, enforceable or notenforceable.’ ‘ Pacific Gas & Electric Co. v. Bear Stearns & Co., supra, 50 Cal.3d at 1127.

The act of inducing breach of contract must be intentional. Thus an act which unintentionally leads to the breach of contract would not be grounds for a cause of action.


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