In the fast-paced world of business, contracts are critical. They help define relationships, outline obligations, and protect your interests. But what happens when someone disrupts a contract, not by breaking it themselves, but by interfering with someone else’s agreement?
This is where two critical legal concepts come into play: breach of contract and tortious interference. While they may seem similar, they’re legally distinct, and knowing the difference can make or break your legal strategy when disputes arise.
At Hone Law, our Las Vegas business litigation attorneys help companies protect their contracts, defend their interests, and pursue damages when third parties unlawfully interfere. Here’s what every business owner needs to know.
What Is a Breach of Contract?
A breach of contract occurs when one party to a legally binding agreement fails to uphold their end of the deal.
Common Examples of Breach of Contract:
- A vendor fails to deliver goods as promised
- A client refuses to pay for services rendered
- An employee violates a confidentiality clause
In these cases, the dispute is between the parties who signed the agreement. Depending on the terms of the contract and the severity of the breach, the wronged party can pursue monetary damages, specific performance, or other legal remedies.
Your Legal Relationship Is Key
A breach-of-contract claim requires a valid and enforceable agreement, as well as a direct violation by one of the parties. If a third party is involved, tortious interference may apply instead.
What Is Tortious Interference?
Tortious interference happens when an outside party intentionally disrupts a contractual or business relationship, causing one party to breach their agreement.
Two Main Types of Tortious Interference:
- With Contractual Relations – Someone knowingly causes another party to breach a binding agreement.
- With Prospective Economic Advantage – Someone interferes with expected business opportunities or negotiations before a contract is finalized.
Third Parties Can Be Held Liable
Unlike breach of contract, tortious interference targets outsiders who are not bound by the agreement but intentionally interfere with it anyway.
Key Differences Business Owners Should Know
While breach of contract and tortious interference both involve disrupted business relationships, they are fundamentally different in how they arise and who is responsible.
Breach of Contract Involves the Parties Themselves
A breach of contract occurs when one party to a valid and enforceable agreement fails to fulfill their obligations. This could mean missing deadlines, refusing to pay, or violating specific terms of the contract. The legal claim focuses on enforcing the original deal between the two parties.
Tortious Interference Comes from an Outsider
Tortious interference, by contrast, involves a third party, someone outside the contract, who deliberately disrupts a business relationship. This disruption could cause one side to breach a deal or walk away from a future opportunity.
Unlike breach claims, tortious interference cases are based on wrongful intent and the economic harm caused by that interference.
Why the Difference Matters
In short:
- Breach of contract = a party breaks their promise.
- Tortious interference = a third party causes that breach on intentionally.
Understanding which applies to your situation can determine the right legal path—whether that means enforcing a contract or filing a claim against someone who intentionally harmed your business.
Signs You May Be Dealing with Tortious Interference
Not all broken deals are created equally. Sometimes, a third party’s behind-the-scenes actions cause the damage. Here are a few warning signs:
A Competitor Encouraged a Client to Back Out
If a rival business pressures or incentivizes your client to breach a contract with you, it may be tortious interference, especially if done in bad faith.
A Former Employee Uses Inside Knowledge to Disrupt
An ex-employee who shares sensitive information or poaches clients may intentionally undermine existing agreements or harm potential deals.
Someone Spreads False Information About Your Business
If lies or misleading claims cause another party to cancel a deal or refuse to sign one, this could constitute interference with prospective advantage.
There’s a Clear Intent to Harm Your Business
Tortious interference isn’t just about disruption—it’s about wrongful intent. You may have a strong claim if a third party’s actions are designed to sabotage your contractual relationships.
What To Do If You Suspect Interference or Breach
Timing and documentation are everything. Here’s how business owners can protect their position:
Step 1: Review the Contract
Ensure you have a valid and enforceable agreement, and gather documentation of the breach or interference.
Step 2: Identify the Source
Determine whether the issue stems from the other party in the contract or an outside influence. This will shape your legal approach.
Step 3: Preserve Communications
Emails, messages, and timelines matter. They can help establish bad faith, wrongful intent, or a pattern of disruption.
Step 4: Consult a Business Litigation Attorney
Whether you’re dealing with a direct breach or a case of interference, you need a strategic plan. A skilled attorney can help you understand your options, file claims, and pursue damages or injunctive relief.
How Hone Law Helps Businesses Protect Contracts and Competitive Interests
At Hone Law, we represent Nevada businesses in complex contract disputes and business torts. Whether you’re facing a clear-cut breach or suspect a competitor of interfering with your deals, we can step in to:
- Enforce your contract rights
- Investigate unlawful third-party interference
- Seek injunctive relief to prevent further harm
- Recover lost profits or business damages
Our attorneys understand the nuances of these cases and work quickly to protect your legal and commercial interests.
When Business Deals Break Down, Hone Law Steps In—Talk to Us Today
If your business relationships are being disrupted—whether through a contract breach or unlawful interference—don’t wait. The longer you delay, the more your company may lose.
Call Hone Law today at 702-608-3720 or fill out our online contact form to schedule a confidential consultation. We’ll help you evaluate your options and take decisive action.