Restatement (Second) of Torts · Section § 496c
Section 496c focuses on the liability for wrongful interference with a contractual relationship, protecting the integrity of contractual agreements.
Source: Restatement Restatement (Second) of Torts § § 496c
One who intentionally interferes with the performance of a contract between another and a third person is subject to liability for the harm caused thereby.
This section makes it clear that if someone intentionally sabotages a contract between two parties, they can be held legally responsible for any resulting damages. It emphasizes the protection of contractual relationships from wrongful interference.
Intentionality in interference is key for liability.
Parties are protected not just from direct interference but also from inducement to breach or disrupt contractual agreements.
Illustration 1
If Person A convinces Person B to breach a contract with Person C, Person A may be liable under this section.
Illustration 2
An employer who persuades an employee to break their contract with another employer can be held liable for the interference.
This case illustrated the principles of § 496c by finding that intentional interference with a contract occurred when one party induced another to breach a contractual obligation.
Understanding § 496c is crucial for businesses and individuals engaged in contracts, as it outlines the liabilities for those who disrupt contractual relations. It serves as a legal deterrent against improper interference in existing contractual agreements.