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ARTICLE · 14 NOVEMBER 2023

Tortious Interference & Real Estate Broker Prospective Contracts

Tortious interference may occur in a few different contexts, but most commonly they are done in either interference with contracts, prospective business relations, or existing economic relations.

United StatesReal Estate and Construction

Tortious interference may occur in a few different contexts, but most commonly they are done in either interference with contracts, prospective business relations, or existing economic relations. In New York, the standard test for finding if a defendant has committed tortious interference with a prospective contract is: "(1) the plaintiff had business relations with a third party; (2) the defendant interfered with those business relations; (3) the defendant acted with the sole purpose of harming the plaintiff or by using unlawful means; and (4) there was resulting injury to the business relationship."1

Tortious interference with prospective real estate broker contracts is not exempt from such causes of action, as New York courts have long recognized this cause of action. Because it is a prospective contract, there is a higher standard than that of a contract that has already been signed and executed.

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