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Chapter 5

Chapter 5 Notes


Department
Law and Business
Course Code
LAW 122
Professor
Kernaghan Webb
Chapter
5

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Chapter 5: Miscellaneous Torts Affecting
Business
CONSPIRACY
-Usually occurs when two or more defendants agree to act together with the
primary purpose of causing a financial loss to the plaintiff. It is hard to prove.
- Rules are different if the defendants injured the plaintiff by conspiring to
perform an unlawful act. In that situation, the court does not have to be satisfied
that the defendants primary purpose was to hurt the plaintiff. It is enough if the
defendants should have known that their actions might have that result.
INTIMIDATION
-Concerned with unethical business practices.
-Occurs when the plaintiff suffers a loss as a result of the defendants threat to
commit an unlawful act against either the plaintiff or a third party.
Two party Intimidation
-Occurs when the defendant directly coerces the plaintiff into suffering a loss.
Three-party Intimidation
-Occurs when the defendant coerces a third party into acting in a way that
hurts the plaintiff.
Whether intimidation involves two or three parties, the basic rules remain the same.
The plaintiff must prove that the defendant threatened to commit an unlawful act.
The tort does not occur unless the threatened party gave in to the intimidation.
As long as the other elements of the tort are established, there is no need to prove
that the defendant intended to hurt the plaintiff.
INTERFERENCE WITH CONTRACTUAL RELATIONS
-Occurs when the defendant disrupts a contract that exists between the
plaintiff and a third party.
Direct inducement to breach of contract
-Occurs when the defendant directly persuades a third party to break its
contract with the plaintiff. Liability requires four factors:
The defendant must know about the contract that exists between the third party and
the plaintiff.
The defendant must intend to cause the third party to breach that contract.
The defendant must actually cause the third party to break its contract with the
plaintiff.
The plaintiff must suffer a loss as a result of the defendants conduct.
Indirect inducement to breach of contract
-Occurs when the defendant indirectly persuades a third party to break its
contract with the plaintiff.
-Liability depends on the same 4 factors PLUS proof that the defendants
actions were themselves unlawful.
UNLAWFUL INTERFERENCE WITH ECONOMIC RELATIONS
-Occurs if the defendant commits an unlawful act for the purpose of causing
the plaintiff to suffer an economic loss.
Three Requirements:
There must be intent to injure.
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