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Liability

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Alpha Engineering Corp. has a contract with Beta Mart Stores to provide customized software for Beta's inventory control system. Discount Outlets,Inc., beta's competitor, bribes an Alpha employee who is writing the code to delay delivery of the code for one week. As a result, Alpha's delivery of the softwareis delayed, and Beta sustains a $500,000 loss. Is Discount liable to Beta? Why or why not.

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Solution Summary

The solution examines whether Discount Outlets is liable to Beta as it bribes an Alpha employee who is writing the code for Beta in order to delay delivery of the code for one week.

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Answer:

Discount is liable to Beta.

Under the general laws of tort an individual has the right to conduct business with out wrongful interference.

Discount is liable to Beta as it is interfering with the contractual relations between Beta and Alpha. (Alpha Engineering Corp. has a contract with Beta Mart Stores to provide customized software for Beta's inventory control system).

The elements of the tort of interference with contract are:
(Source: ...

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