Restatement (Second) of Torts · Section § 766
This section addresses the liability of one who intentionally interferes with another's contractual relations.
Source: Restatement Restatement (Second) of Torts § § 766
One who intentionally interferes with another's contract or prospective contractual relation is subject to liability if the actor does not have a privilege to do so.
Section 766 outlines the liability for intentionally interfering with someone else's contractual relationships. If a person intentionally disrupts another's contract, they can be held liable unless they have a valid reason or privilege to act in this manner.
Intention is a key element; the interference must be deliberate.
The actor must not have privilege or justification to interfere.
This section protects legitimate business relations from harmful interference by outsiders.
Illustration 1
A competes with B and knowingly persuades B's customer to breach their contract with B. This interference is intentional and actionable under § 766.
Illustration 2
An attorney advising a client to terminate a contract with another party without justification can be held liable for interfering with that contract.
This case established the principle that inducing a breach of contract can lead to liability under interference torts.
This case illustrated that intentional interference with a potential business relation constituted a violation under § 766.
Understanding § 766 is crucial for businesses to navigate potential liabilities in contractual dealings. Companies must be aware that intentional interference can lead to significant legal repercussions and damage claims.