Question

Q. You run a small janitorial service in your town. You know that a rival company has the contract to clean the public areas at the local college. You send advertisements to almost every business in town, including the college. Those advertisements focus on your all-natural cleaning products, your commitment to helping your clients recycle, and your reduction in waste. Your advertisement is accurate and widely distributed. You receive a call from the college administration asking you when you can begin your sustainable work at the college. Soon after starting, you are sued by your rival for wrongful interference. Explain whether or not your actions constitute wrongful interference.

Answer feedback: Wrongful interference with a contractual relationship requires a valid, enforceable contract between two parties, the third party with knowledge of that contract, and the intentional inducing of one party to breach that contract. In this situation, there is a valid contract between the college and your rival. You know about that contract. But your actions in advertising are not an intentional inducement to breach the contract. While you do intend to attract new clients, you sent the advertisement out broadly. This is justified or permissible interference. This is known as bona fide competitive behaviour. The college may have breached its contract with your rival, but since you did not specifically target or induce the college to intentionally breach that contract, you should not be liable.