Tortious interference with contract—also known as intentional interference with contractual relations or business expectancy—is a civil claim or cause of action based on interference with a contract or a prospective contract that is about to be completed—by a person or entity who is not a party to the contract (third party).

A claim for tortious interference is based on the idea that the third party encouraged or induced one of the parties to the contract to breach the contract, causing damages to the nonbreaching party, who may sue the third party to recover those damages or losses. In some states there is a requirement that the interference be done maliciously or without justification.

Laws regarding claims for tortious interference with contract vary from state to state. Some states have broadened the protections against interference beyond situations where there is an existing contract and recognize claims for interference with prospective economic advantage or business relations.

But whether there is an existing contract or not, some instances of interference will not create legal liability and will be recognized as legitimate competitive activity, for example.

In Alabama, tortious interference with a contract, also known as intentional interference with contractual relations, is recognized as a cause of action. To establish a claim for tortious interference in Alabama, a plaintiff must prove the existence of a contract or business relationship, the defendant's knowledge of this contract or relationship, intentional and wrongful interference by the defendant that caused a breach or termination of the relationship or contract, and resulting damage to the plaintiff. Alabama law requires that the interference must be intentional and wrongful, which means there must be evidence of malice or lack of justification. The state distinguishes between improper interference and actions that are considered legitimate business competition. Therefore, not all interferences with business relationships will result in legal liability, as the law recognizes the right to compete fairly in the marketplace. It's important for individuals and entities in Alabama to understand the nuances of this area of law and to consult with an attorney if they believe they have a claim for tortious interference or if they are accused of such conduct.