[blindlaw] Inducement to Breach of Contract

Gerard Sadlier gerard.sadlier at gmail.com
Thu Oct 23 19:11:37 UTC 2014


Hi all

I'm looking for any authorities, academic or judicial on the following points:

1. Suppose that   A has a contract with B. Subsequently, A   enters
into a contract with C which is inconsistent with A's contract with B.
If A fulfils its contract with C, it will by so doing breach its
contract with B. Suppose that C was unaware of A's contract with B
when C contracted with A. Can C be held liable for inducing A to
breach their contract with B? The authorities I have found are
inconclusive on the point but suggest that C cannot be held liable.

2. Suppose that A's contract with C in the example above is an option
agreement. For example, an option agreement under which A has the
right (but no obligation) to sell to C. Suppose that under the
agreement, C is bound to buy if A chooses to sell to it. A's contract
with B obliges A to sell to B. Does A breach its contract with B by
entering into the option agreement with C or at the point when A
exercises its option and sells to C? The authorities I have found
suggests that A breaches its contract with B only when it exercises
its option to sell to C.

3. If the answer to 2 above is that A breaches its contract with B
only when it sells to C, then:  If C did not know of A's contract with
B when C contracted with A but became aware of A's contract with B
before A chose to exercise its option to sell to C - In what
circumstances would C be held liable for inducing a breach of A's
contract with B? In particular, would C be entitled to press A to
exercise their option after C was aware that by doing so, A would
breach its contract with B?

Apologies for the detailed hypotheticals - I really would be grateful
for any pointers, as point 3 in particular seem unconsidered in
the authorities that I have found at least.

Kind regards

Ger




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