Legal Definitions - economic torts

Economic torts

Economic torts, also known as business torts, are a group of legal wrongs that arise from business transactions and can result in financial loss. These torts include:

• Fraud
• Negligent misrepresentation
• Interference with contractual relations
• Interference with prospective advantage
• Injurious falsehood

One example of an economic tort is fraud. This occurs when someone intentionally deceives another person or business for financial gain. For instance, if a company sells a product that they know is defective and fails to disclose this information to the buyer, they could be sued for fraud.

Another example is injurious falsehood, which is also known as trade libel. This occurs when someone makes false statements about a business or product that causes financial harm. For example, if a competitor spreads false rumors about a company's product being unsafe, this could lead to a loss of sales and revenue for the targeted company.

These examples illustrate how economic torts can result in financial harm to individuals and businesses. They are often complex legal cases that require a thorough understanding of business law and the specific circumstances of the case.