Precise Engineering Corporation has a contract with Quik Mart Stores to provide customized software for Quik's inventory control system. Retail Outlets, Inc, Quik's competitor, induces Sam, a Precise subcontractor who is writing code for the Quik software, to delay delivery of the code for one week. As a result, Precise's delivery of the software is delayed, and Quik sustains $500,000 in lost profits. On what ground could Quik recover damages from Retail Outlets?

What will be an ideal response?


Quik could file an action against Retail Outlets based on wrongful interference with a contractual relationship. The elements that Quik must prove are (1) a valid, enforceable contract between two parties; (2) the knowledge of a third party that this contract exists; and (3) the third party's intentionally causing the breach of the contract for the purpose of advancing the interest of the third party. For a successful tort action, there must also be damages caused by the third party's act. Facts that satisfy all of these elements are set out in the problem. There was a valid, enforceable contract between Precise and Quik. Retail Outlets knew of this contract, Retail Outlets intentionally interfered with this contract, causing its breach, for the purpose of advancing its own interest (undercutting the profit of its competitor). Quik suffered lost profits as a result of Retail Outlets' act.

Business

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