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What are business torts?

Business torts, often referred to as economic torts, encompass a wide spectrum of wrongful actions that can occur within the realm of business and commerce. These torts involve various forms of misconduct, such as interference with contractual relations, unfair competition and deceitful practices.

Business torts can arise in numerous contexts, from disputes between competitors to conflicts within a business entity itself. Understanding business torts is crucial for business owners and managers who aim to protect their interests and navigate potential legal disputes effectively.


Defamation is a serious business tort that can significantly damage a company’s reputation. It involves making false statements about a business or its products/services, either orally (slander) or in written form (libel). Businesses must be vigilant in monitoring and addressing defamatory content.

To help protect against defamation, businesses should regularly monitor social media platforms, and review websites or other online forums for any mention of the company or its products and services. This way, they can address any defamatory statements swiftly and professionally. This can be done by engaging with the individual or entity responsible and requesting the removal or correction of the false information.

Tortious interference

This tort occurs when a third party intentionally disrupts a business’s existing contracts or business relationships for their gain. This interference can lead to financial losses and damage to the affected business’s reputation.

Businesses can mitigate the risk of tortious interference by ensuring that contracts with suppliers, clients and partners include clear terms and conditions, including provisions to help prevent interference by third parties. Businesses should also cultivate strong, transparent relationships with clients, suppliers and partners to minimize the likelihood of outside interference.

Restraint of trade

Restraint of trade refers to actions that restrict a business’s ability to operate freely in the marketplace. This may include agreements or practices that hinder competition or prevent businesses from engaging in lawful trade activities.

Businesses can navigate restraint of trade issues by familiarizing themselves with antitrust laws and regulations that govern trade practices and competition in their industry. It would also help to scrutinize contracts, agreements and non-compete clauses to help ensure compliance with antitrust laws and protect against restraint of trade claims.

Understanding and addressing business torts is essential for safeguarding a company’s reputation, relationships and operations. By taking proactive steps to prevent and address these legal wrongs, businesses can mitigate risks and protect their interests in today’s complex and competitive business environment.


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