Allen v Flood [1898] AC 1
Citation:Allen v Flood [1898] AC 1.
Rule of thumb:Is encouraging someone to breach their contract allowed? No, if you encourage another party to breach their contract, then you yourself can be liable for this.
Judgment:
This case set the general test that a person is not allowed to encourage someone to breach their contract with another party or breach the duty of care towards another party or else they can be made liable for the damages of this.
Ratio-decidendi:
‘Where a third party encourages a person to breach their contract with another party then the third party can be liable for any damages which arise by the person breaching the contract,… where the act itself amounts to an interference with legal rights... the immediate agent is liable, and it may well be that the person who pulls the strings in the background is liable, though it is not available in this present case...’, Lord MacNaghten
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