This section is from the book "The Law Of Contracts", by William Herbert Page. Also available from Amazon: Commercial Contracts: A Practical Guide to Deals, Contracts, Agreements and Promises.
If no contract is in existence between A and B, and X interferes to prevent A from making contracts with B, some courts hold that B may recover from X for the damage thus caused. In the common class of cases B has some business or trade and X's wrongful act is looked upon as interfering therewith. Thus if X, an employer, threatens to discharge an employee A, if A trades with B, it has been held that B can maintain an action against X.1 In other cases this right of action has been denied if the means used to prevent the formation of the contract was not itself a tort. Thus where a teacher persuaded pupils not to patronize a certain store, it was held that the owner of the store could not maintain an action against the teacher, even if such conduct was malicious.2 So if an employer threatens to discharge employees if they deal at a certain store, it has been held, contrary to the authority already discussed,3 that the owner of the store has no right of action against the employer.4 So it has been held that if X refuses to employ anyone who rents of A, and by reason thereof A is unable to rent his house, A has "no right of action against X.5 So no injunction can be given against the action of competitors in cutting rates in order to break up a rival's business.6
4 Ryrd v. English. 117 Ga. 191; 43 S. E. 419.
5 Brink v. R. R.. 160 Mo. 87; 53 L. R. A. 811; 60 S. W. 1058.
6 Walden v. Conn. 84 Ky. 312; 4 Am. St. Rep. 204 : 1 S. W. 537.
1 Graham v. R. R.. 47 La. Ann. 214; 49 Am. St. Rep. 366; 27 L. R. A. 416; 16 So. 806.
2 Guethler v. Altaian, 26 Tnd. App. 587; 84 Am. St. Rep. 313; 60 N. E. 355.