In: Accounting
damages for interference with contractual relations include:
A) payment for emotional distress
B) conversion fees
C) nominal demages
D) criminal fines
Answer :
To start with defining ,
Interference of contractual relations is also known as Tortious Interference. In other words , when an individual destroys or damages intentionally the business relationships or contractual relationships with another individual which is bound in an contract with him , then it directs for Tortious Interference, This kind of damage causes economic harm , physical harm , emotional distress to any third party or to an individual who is bound in any kind of contract with the individual.
Example : When stalk callings / blackmailing is used for any business contracts to take place , this refers to Tortious Interference.
Now , damages for interference with contractual relations include :
a) Payment for Emotional Distress : So , before awarding damages for emotional distress ,the main point to make a note towards is that whether the measure of the damages is same as the tortious interference to an individual and also the mental distress will be able to get recovered by the damages that will be paid to an individual. If yes, then any damages caused emotionally will be recovered by rules that are set under the law , but main point to note in this is it is totally limited to cases in which more deliberate and harsh methods are done in relation to causing emotional distress. Also note that it totally depends on courts to treat such cases with whatever tendencies and allocate such cases under intentional damages to contractual relationships.
b) Conversion Fee : The intentional action caused by an individual to harm the contractual relation will leave the court to make a decision to pay for the conversion fee also. but it totally depends on court to treat it as intentional or unintentional actions..
c) Nominal Damages : In this aspect , it is seen that the damages that are been given are genuinely recoverable for the intentional actions or not. If the measure is not recoverable in that aspect then it would be on courts decision to deal it that way where it is favourable. Sometimes , it is seen that the persuasion from the victim party was such that it led to the interference to the contractual relationships between the two, so in this case it would be seen by the court whether the actions were persuasive or not on the third party.
d) Criminal Fines : So , the main purpose of the breach of contract is awarding a type of compensation to the affected party. In this case , if the affected party as a result of breach of contract pays criminal fines , then it is the duty of the court as per the act of interference of the contractual relations to put the injured party in a position where it would have been if all the duties were performed nicely. So , the damages limiting to recovery will be measurable by the court on the behalf of the victim and will be taken action upon accordingly.
In a nutshell , it can be said that this requires a fair jurisdiction to judge upon and also determining the damages caused intentionally or unintentionally. The only significance to apply the said law is that the damages caused any to the affected party should be recovered properly as an individual may be affected by the consequential damages after that as well.