Building Contracts - Inducing Breach of Contract


The New Brunswick Court of Appeal recently dealt with the tort of Inducing Breach of Contract to the field of Building Contracts.

The decision provides a useful framework to test the conduct of the various parties to a construction project. It shows that a plaintiff will have a difficult time asserting a claim for inducing breach of contract if the defendant is simply protecting its own economic position, does not intend to obtain the benefits of the plaintiff's contractual position and has acted on legal advice.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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