The importance of business torts is simple: having a way to hold accountable those who have caused harm. Tort law can be crucial when it comes to business finances, especially if a loss occurred due to the unlawful actions of others. Business tort cases often require immediate attention; otherwise, a business may have to endure prolonged uncertain times and years of legal filings, court, and financial losses. Here are just a few of the most common types of business torts and how to approach each one:
Tortious interference is defined as intentional interference with contractual relations. Interference can happen whenever an individual intentionally attempts to or successfully damages a contractual or business relationship. This could be a third-party interference or an individual who was a part of the initial contract or agreement. Typically, this individual is looking for some financial gain or attempting financial loss to another party. A tortious interference claim requires that a plaintiff can prove the interference was intentional.
Fraud & Conspiracy
One of the most commonly understood types of business torts is fraud. However, fraud doesn’t always mean that a false statement was made by a party. It can also mean that a party intentionally omitted crucial information. Committing fraud means there was either a lie or omission of facts to have a third-party make a non-fully informed decision. Sometimes, when fraud occurs, it’s more than just a single individual. If multiple parties are involved in the fraud, then conspiracy charges may also be filed. A conspiracy is whenever two or more parties act together unlawfully and could easily happen in combination with many types of business torts.
Unlike fraud, negligent misrepresentation can happen even if a party did not explicitly realize they were sharing inaccurate information. This type of tort is one of deceit. A party could make statements they wholly believe to be accurate, but without reasonable grounds to make such statements, they may have misrepresented themselves, a business, or other parties. This can be difficult to prove but can be proved if a contract, agreement, or other business decision was made when a party failed to take reasonable care to communicate information that is true or correct.
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