Interference with Existing Contractual Relations

What is Interference with an Existing Contractual Relation?

Interference with an existing contractual relation occurs when an outside party interferes with an existing contractual agreement between two other parties.  As a result of this interference, one or all of the following happens:

• an increase in expense to perform the contract
• an aggravation in the performance of the contract
• a  breach of contract

Elements that Create an Interference with an Existing Contractual Relationship

Although the law involving interference with a contractual relationship is still developing, there are some consistent factors to this claim:

• An existing agreement or contract
• The interfering party knew or was aware of the existing agreement or contract 
• Intentional interference to bring about a breach or hinder performance of the contract

What are Some Typical Contracts Where Interference with Relations Occur?

Generally, any type of contract may be subject to interference, with the exception of marriage contracts. Some frequent types of situations often involve:

• Employment contracts
• Service contracts
• Purchase contracts

What Kind of Interference is Required by the Interfering Party?

There is no technical requirement as to the kind of conduct that may result in interference with the performance of a contract.  The interference may be through conduct or by persuasion through a simple request. Other authorities have held that interference may consist of physical or economic harm. 

Should I Seek an Attorney if an Outside Party has Interfered with my Contract or Agreement?

Inducement to breach a contract and interference with contract claims are very complicated and can involve a variety of different factors. Contract law differs in each state, and an experienced attorney would help you to complete any requirements and procedures in a timely manner before filing deadlines.

Ken LaMance

, LegalMatch Law Library Managing Editor and Attorney at Law

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Last Modified: 08-02-2012 11:19 AM PDT

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