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When does business competition become unlawful?

On Behalf of | Oct 19, 2021 | Business And Commercial Law |

There are many different companies in Florida. These companies provide many different services and produce many different products. Some of these products and services are completely unrelated, some rely on each other to produce their product or provide their service and others provide the same or similar products and services as other companies. This can be good to create competition and push companies to provide better products and services.

This benefits the consumers and if a company has the best product or service they can grow their business and ultimately become more successful. While competition can be beneficial for the consumers and commerce in general, it can also create situations where companies will push the boundaries of what is considered fair competition. Sometimes companies will cross that line as well and the conduct used to gain an edge over the competition is improper.

Tortious interference with contracts

One way companies do this is called tortious interference with a contract. There are different ways that companies may do this, but it involves intentionally inducing a breach of contract to hurt the competition. This could be done through threats or by making it impossible for others to complete their obligations under the contract. In order to actually be considered tortious interference though certain factors must be met.

There must be a valid contract between the company and a third-party and the company committing the interference must have knowledge of the contract. There must be intentional interference which is improper. Finally, the company must suffer damages as a result of the interference.

Companies in Florida rely on their contracts in order to carry out the various aspects of their business. In order for these contracts to be useful though, they need to be able to rely on the other party to perform their obligations under the contract. That is why it can be particularly difficult when other companies purposely interfere and make it impossible to fulfil the contract. It is important that companies committing tortious interference are held accountable and consulting with experienced attorneys could be beneficial.