Altering Risks and Creating Windfalls: the Case to Abolish Intentional Interference with Contract

Introduction

Intentional interference with contract is a unique cause of action that stands at the intersection of tort and contract law. It provides security by offering damages to actors whose contracts are intentionally interfered with by third parties. However, contracts are not an absolute guarantee of income; they are tools to allocate risk among willing parties who may sue for damages if the other party breaches. By providing an extra source of compensation beyond compensatory damages, the tort alters the balance of risks that were originally bargained for and creates the possibility that a party may recover twice for the same breach, which would constitute an undeserved windfall.