Contract News

Breach Of Contract

The courts recognize a claim for damages when someone induces a breach of contract or interferes with financial expectancies. An improper motive such as fraud or duress is usually required. Most authorities find that mere persuasion or entreaty is not enough (Connecticut Law of Torts, chapter XIX, § 165).

For intentional interference with contractual relations, the plaintiff must have a contract with a third person and the third person must be induced to break the contract with the plaintiff.

Interference with a business relationship requires (1) a business relationship between the plaintiff and another party, (2) the defendant’s intentional interference with the business relationship while knowing of the relationship, and (3) actual loss by the plaintiff due to the interference (Hi-Ho Tower, Inc. v. Com-Tronics, Inc. , 255 Conn. 20 (2000)). There must be a direct relationship between the defendant’s act and the plaintiff’s loss and a reasonable expectation of receiving a profit in the prospective transaction. A mere possibility of making a profit is not enough (Connecticut Law of Torts, chapter XIX, § 165).

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	Did You Know?
	When Signing On Behalf Of A Corporation, You Should Always Describe Your Role Next To Your Name If you are signing on behalf of a corporation, and do not want to be personally liable in a suit for damages, then make that clear by writing after your name, followed by whatever words describe your role in the corporation.