Legal Definitions - inducement of breach of contract

Inducement of breach of contract is a legal term that refers to the act of persuading or encouraging someone to break a contract they have with another party. This is also known as tortious interference with contractual relations.

For example, if Company A has a contract with Company B to provide services, and Company C convinces Company B to break the contract and work with them instead, Company C may be liable for inducement of breach of contract.

Another example could be if an employee has a contract with their employer that prohibits them from working for a competitor for a certain period of time after leaving the company. If a competitor offers the employee a job and encourages them to break their contract with their previous employer, the competitor may be liable for inducement of breach of contract.

These examples illustrate how inducement of breach of contract can harm businesses and individuals by interfering with their contractual relationships and causing financial losses.