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 New Jersey, tortious interference with contract, also known as intentional interference with contractual relations, is recognized as a civil cause of action. To establish a claim for tortious interference, a plaintiff must demonstrate the existence of a contract, knowledge of the contract by the third party, intentional and wrongful interference by the third party that caused a breach or disruption of the contractual relationship, and resulting damages. New Jersey law also recognizes a claim for tortious interference with prospective economic advantage, which protects business relationships even in the absence of an existing contract. However, not all interferences are actionable. Actions that constitute normal competitive behavior or are done with justification may not result in legal liability. It is important for individuals or businesses who believe they have a claim, or are accused of tortious interference, to consult with an attorney to understand the nuances of New Jersey law and the specifics of their situation.