What are the different types of business torts?
Business torts are legal wrongs that involve injuries to a person’s or business’ economic interests rather than to the person itself. In California, the five main types of business torts are interference with contractual relationships, interference with prospective economic advantage, conversion, deceptive trade practices, and fraud. Interference with contractual relationships occurs when a third party damages an existing contract or agreement between two or more parties, or uses unlawful or unethical tactics to keep them from entering into a contract. Interference with prospective economic advantage happens when someone intentionally disrupts a potential business transaction and causes one party to lose out on financial gain that would otherwise have been gained. Conversion occurs when someone uses, sells, or destroys another person’s property without their consent. Deceptive trade practices can occur when someone engages in false advertising, bait-and-switch tactics, or other unfair methods to lure in customers. Finally, fraud occurs when someone makes false representations or conceals important facts when negotiating a business transaction, often in an attempt to gain financially. Although business torts can be complex and difficult to prove, they can affect a company’s finances significantly. If you believe you may have been a victim of a business tort in California, it’s important to contact an experienced business transaction attorney who can help protect your rights.
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