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?
	The Requirement That Certain Contracts Be Written & Signed Came From 'The Old English Statute Of Frauds' The title of the statute purpose was to prevent deceptive acts by people who falsely claimed they were parties to oral contracts.