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What is Breach of Contract?
where you have a contract with someone and you break it, back out of it, or don’t do what you were supposed to do
What is Inducing Breach of Contract?
causing or persuading a contract to breach it
inducing someone else to break a contract, but not yours
must be deliberate
Example of Inducing Breach of Contract
Kristene owns a building company and I wanna hire her, but there’s a worker that I don’t like.
I tell her I don’t wanna work with her unless she fires that worker
The worker can sue me for inducing breach of contract (employment contract) because I gave the idea to Kristene
Who was Pocklington?
what a creative director for Gainers, owned Pocklington Holdings, and an owner of the Oilers
went to Alberta govt and got a loan for the Gainers company
What were the terms for the loan between Gainers and the AB govt?
clause that no assets could be sold ot disposed of without the consent of the Alberta govt
In 1980s, what became the problem for Gainers?
suffering through financial problems
Pocklington sells Gretzky to make money but it wasn’t enough
AB govt looked at Gainers financial situation and decide to call in their loan
What did Pocklington do when the govt called in the loan?
he moves the Gainers assets into his Pocklington Holdings conpany
did it to hide the assets and protect them for himself
What was the result of Pocklington moving assets from Gainers to Holdings?
stated in contract with the govt loan that he couldn’t move, sell, or dispose the assets without the consent of the govt
went against this and govt sues him for inducing Gainers of breaching the contract
Business Tort - Interference with Economic Relations
engaging in unlawful conduct like bribery, defamation, or paying kickbacks to discourage customers from engaging with the competitors
illegal actions interfering with the normal way the market should work
Business Tort - Intimidation
business tort equivalent to assault
through threat
Business Tort - Deceit or Fraudulent Misrepresentation
intentional and fraudulent misleading of another party causing them damage
Fraud Continuum Scenario - Knowing Them to be False
deliberately lying → most serious
ex. working at a car dealership and wanting to make a sale. Customer asks if the car’s ever been in an accident
I say no, even though I know it’s been in an accident
Fraud Continuum Scenario - Without Belief in Their Truth
a little serious
ex. telling a customer the car’s was driven by a old lady and rarely used it even though I don’t actually know that.
very slim possibility
Fraud Continuum Scenario - Reckless/Not Caring Whether True or Not
less serious
ex. customer asks if there’s warranty on the car and I just say yes but I don’t know if there is at all
What damages are rewarded in actions of Fraudulent Misrepresentation?
punitive damages
depends on the severity of the fraud
did it happen more than once, seriousness, documents involved?
Business Tort - Conspiracy to Injure?
when you get parties acting together to injure the business interests of another
usually the competitor
Fast food example of Conspiracy to Injure
Mcdo, A&W, and Burger King are upset because Tims is getting a bigger share of the market
those 3 conspire together to put pressure on suppliers to basically limit and cut of Tims’ supplies
Business Tort - Malicious Prosecution?
making up a story to press charges against someone out of malice
plaintiff must establish that the defendant initiated prosecution out of malice
must be lack of reasonable grounds in the defendants case
Business Tort - Passing Off
misleading the public as to whose product or service is being offered at yours as well
as if your product was anothers
If I made a company called “McRon’s”, how would i pass off to be part of McDo?
making a happy meal type thing but calling it happiness meal
people think im associated with Mcdo and they come to my restaurant
Passing Off - First Thing Plaintiff Must Prove
prove that the goods, service, and business of the plaintiff have a reputation that is worth protecting
Passing Off - Second Thing Plaintiff Must Prove
the defendant misrepresented its goods, services, or business as being those/associated with the plaintiff
Passing Off - Third Thing Plaintiff Must Prove
the public was misled or confused
confusion is likely
Passing Off - Fourth Thing Plaintiff Must Prove
that the plaintiff suffered damages
ex. loss of business, loss of reputation
Business Tort - Breach of Confidentiality
involves the wrongful disclosure of confidential info
ex. trade secrets, customer lists, future plans
How does one “Breach Confidentiality”?
info must’ve been of confidential nature, given to someone in confidence, and then misused by the person who received the info
basically an NDA
Business Tort - Injuries Falshehood or Trade Defamation
defamation in a business setting
making statements that are untrue and unfounded about the goods or products of another
What results from Trade Defamation?
consumers to regard products or services less favourable
damages suffered by the plaintiff