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 Dakota, tortious interference with a contract is recognized as a legitimate legal claim. This type of civil claim arises when a third party, who is not part of an existing contract, intentionally interferes with that contract, causing one of the parties to breach it and resulting in damages to the non-breaching party. The non-breaching party can then sue the third party for those damages. North Dakota law requires that the interference must be intentional and without justification. The state also recognizes claims for interference with a prospective economic advantage or business relations, which extends protection beyond existing contracts to potential business relationships that have not yet been formalized. However, not all interferences are actionable; some activities may be considered legitimate competitive behavior and do not incur legal liability. It is important to distinguish between unlawful interference and lawful competition, and an attorney can help clarify these distinctions and assess the merits of a potential claim.