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Common causes of action between businesses

Like the newness of spring, developing a new business relationship can be exciting; especially given how lucrative the relationship may be. However, like any relationship, there may be problems that may doom the future prospects. When this happens, it is important to understand the different legal bases that a lawsuit can be based upon. This post will highlight a few common actions that are brought when a contract is not adhered to. 

Interference with prospective business advantage – There are a number of situations where your business has developed a relationship with another company, but it has not be officially recognized through a contract. However, the lack of a contract does not mean that such a relationship is not protected from interference from third parties.  As such, if such a third party disrupts an established (but not contractually memorialized) relationship, monetary damages could be sought.

Fraudulent misrepresentation – Generally known as common law fraud or deceit, this claim is based on the notion of giving a business a legal remedy for monetary losses or other issues stemming from false statements or representations made in the course of doing business or securing the same. Basically, if a company intentionally makes a statement that is materially false, and your company relied on the statement and was harmed by it, your company could seek damages as a result.

Interference with contractual relations – As we alluded to earlier, un-memorialized relationships can be protected, so it follows that relationships that are contractually based can be protected.

If you have questions about other possible causes of action, an experienced attorney can help. 

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