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Saturday, April 9, 2011

Contractual Interference

This is something you should watch out for. Contractual interference occurs when a third party induces one of the parties to a contract to violate the contract itself. The elements are:

1.) A valid contract exists between 2 or more persons
2.) A third person induces one of the parties to violate the contract
3.) The third person is a stranger (not one of the parties)
4.) The interference had no valid excuse or lacks legal justification

When a contractual interference occurs, the meddling outsider becomes liable in solidum together with the party who made the violation. This means that either the stranger, the violating party, or both can be sued for damages if there is a contract breach. However, if the outsider's interference was honest and meant to protect the party he is conniving with from danger to his life or property, the outsider can't be sued for contractual interference. There's a case on that; So Ping vs. CA 314 SCRA 751.

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