What Is A Business Tort?
A business tort is an act of aggression often with the intention of doing harm to the business they target. They are also usually outside the legal way that business occurs. The tort may or may not be illegal, and they may be:
- Through the act of negligence
- Through the act of recklessness
Can Businesses Sue for Loss in the Case of a Tort?
A business may seek to recover damages in civil court from situations that occur due to the action of another business that acts in negligence or intentionally, and where there is a financial loss.
Generally, court actions that involve business torts or the aggressive action of one business against another are more about keeping business running through the language of contracts or trade laws.
For example, if one business restrains another from access to the market or trade, the retained business may file a lawsuit that asks the court to remove the restraint and legally allow the restrained business to enter the market.
Are There Different Types of Business Torts?
There are five general areas of business torts. Those include:
Tortious interference revolves around contracts and acts of aggression that either cause one side of the agreement to breach the contract or to underperform its obligation of the contract. The interference generally comes from a third party with the intention of harming the contractual relationship between those contracted to do business.
Restraint of Trade
Restraint of Trade occurs when another business or individual causes or restricts a business from freely doing business. Those actions often involve the:
- Limiting of sales or sales opportunities
- Limiting trade
- Limiting or preventing the movement of goods
Injurious falsehoods are false statements about a company that are made intentionally to cause damage. To prove injurious falsehood as a crime, the business must prove that malice was the driving force and that the company or individual who made the false statement knew the statement was false.
When a business commits fraudulent misrepresentation they are seeking to gain an unfair advantage or unlawful gain. Interestingly enough, remaining silent can be a fraudulent misrepresentation. Any action by a business or individual that aims to deceive another business would be considered at risk of being a fraudulent misrepresentation – even the act of not correcting a misinterpretation.
Some business tort cases may contain more than one type of tort violation. For example, creating a lie about a business so that you can change the mindset of someone about to sign a contract can easily lead to a fraudulent misrepresentation situation where you not only slander the other business but also seek an unfair gain based on the original lie.
Contact Brown & Gould For Your Business Tort Legal Questions
Business torts are complex, and they change based on the contracts involved or the type of businesses involved. A business law lawyer will help you sort out the case and help you understand your rights under the law.