Businesses are allowed to compete with each other for customers. But competition among businesses must be fair. Colorado law protects businesses from the unfair practices of competitors. While many business relationships are based on contracts, a business that has been harmed by the wrongful conduct of another company can pursue legal action against that company even if they do not have a contractual relationship.
A tort is a “legal wrong committed upon the person or property independent of contract.” Legal wrongs that one company commits against another company are called “business torts.” Colorado law recognizes the business tort of intentional interference with contractual relations, which prohibits a company from taking actions that interfere with another company’s contract with a third party.
These cases are usually fact intensive and complex. Nevertheless, a company that believes a third party has improperly interfered with its contractual relationship with another business or individual may have a remedy available to it under Colorado law. (more…)