Legal Definitions - interference with a contractual relationship

Interference with a contractual relationship is a legal term that refers to the intentional or unintentional actions of a third party that disrupt or prevent the performance of a contract between two parties. This interference can result in financial losses or damages to one or both parties involved in the contract.

Example 1: A company hires an employee who has signed a non-compete agreement with their previous employer. The previous employer may sue the new company for interference with the contractual relationship if the employee violates the non-compete agreement and takes clients or confidentialinformation with them.

Example 2: A supplier intentionally delays the delivery of goods to a company, causing the company to breach its contract with its customers. The customers may sue the supplier for interference with the contractual relationship.

These examples illustrate how a third party's actions can disrupt or prevent the performance of a contract, leading to legal consequences. Interference with a contractual relationship can result in financial losses, damages, and legal disputes between the parties involved.