What is the current state of the law on liability for breach of contract where a third party has been found to have breached the contract?
Ontario, Canada
The following excerpt is from Apotex Inc. v. Plantex USA, Inc., 2005 CanLII 15481 (ON SC):
However the court stated in Said v. Butt (at 505) that this protection from liability does not apply where “the person who procured the breach of contract was in fact a stranger, that is a third person, who stood wholly outside the area of the bargain made between the two contracting parties. … [H]e is in the position of a stranger, he will be prima facie liable, even though he may act honestly, or without malice, or in the best interests of himself.”
"The most advanced legal research software ever built."
The above passage should not be considered legal advice. Reliable answers to complex legal questions require comprehensive research memos. To learn more visit www.alexi.com.
Other Questions
What are the factors used to determine whether a party who has not made full disclosure under a contract signed a contract with another party would have signed the contract even if the disclosure had not been made? (Ontario, Canada)
What is the test for interpretation of a commercial contract where the contract states that the contract is not a "contract with respect to the context or factual matrix"? (Ontario, Canada)
Can a principal be held liable for breach of contract if a third party agrees to contract without consulting the principal? (Ontario, Canada)
How have courts dealt with a breach of a contract of suretyship under seal where a principal has been found to have breached the contract? (Ontario, Canada)
Can a fiduciary relationship between a party and the other party result in a breach of contract? (Ontario, Canada)
What are the consequences of a breach of contract where a plaintiff is entitled to a third party's "aggravated damages"? (Ontario, Canada)
What is the test for a party to a contract where the contract is not binding and the terms of the contract are not binding? (Ontario, Canada)
Is a servant liable to a tort action if he causes a breach of contract between his employer and a third party? (Ontario, Canada)
Is there any case law where a party has been found to be in breach of disclosure or breach of interim support obligations? (Ontario, Canada)
What is the current state of the law on inducing breach of contract claims against the directors of a parent corporation? (Ontario, Canada)
