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 North Carolina, tortious interference with contract is recognized as a legal claim when a third party, who is not part of an existing contract, intentionally induces one of the contracting parties to breach that contract, resulting in damages to the non-breaching party. The elements of this claim typically include the existence of a valid contract, knowledge of the contract by the interferer, intentional inducement to breach the contract, actual breach of the contract, and resultant damages. North Carolina law also recognizes claims for tortious interference with prospective economic advantage or business relations, which protect the potential for future contracts or business opportunities. However, not all interferences are actionable; the law distinguishes between unlawful interference and lawful competitive behavior. The interference must be without justification and may require a showing of malice or improper motive. An attorney can help determine the specifics of a claim and whether an action for tortious interference is viable under North Carolina law.