Restatement (Second) of Torts · Section § 559
This section addresses the liability for intentional interference with contractual relations, focusing on the actor's intent and the consequences of such interference.
Source: Restatement Restatement (Second) of Torts § § 559
One who intentionally interferes with another's contractual relation is liable for the harm caused to the other by the interference.
This section states that if someone intentionally disrupts another person's contract with a third party, they can be held legally responsible for any resulting damages. It emphasizes that the intent behind the interference plays a crucial role in determining liability.
The actor's conduct must be intentional, not merely negligent or accidental.
The interference must result in actual damage to the aggrieved party.
Illustration 1
A persuades B to breach a contract with C, resulting in C losing a significant business opportunity.
Illustration 2
D publishes false information about E’s business practices, leading E's partners to terminate their contract.
This case established the principle that a party who intentionally causes another to breach a contract may be held liable.
In this case, the court examined the limits of liability when one party interfered in a contractual engagement.
Understanding § 559 is crucial for businesses and individuals navigating contractual relationships. It underscores the legal ramifications of intentional interference and serves as a deterrent against unethical business practices.