Legal Definitions - expectancy

In legal terms, expectancy generally refers to a future interest or a potential benefit that is not yet a guaranteed right. It most commonly arises in two distinct areas of law: estate planning and business disputes.

• In estate law, an expectancy is the potential share of an estate that someone, often an heir, anticipates inheriting upon the death of another person. It is considered a future interest because the person whose estate it is still alive, and their will (or the laws of intestacy) could change at any time. Because it is not a vested or guaranteed right, common law generally views attempts to transfer or sell an expectancy as invalid. However, courts may sometimes recognize a formal agreement where an heir releases their expectancy interest, provided it was done for fair value and without any fraud or undue influence.

• In the context of business law, particularly in claims of tortious interference, an expectancy refers to a reasonable and probable expectation of a future business relationship, contract, or economic benefit. This could be an ongoing business deal, a potential new client, or a future opportunity that a party believes they would have secured had it not been for the wrongful actions of another party.

Examples:

• Estate Law Expectancy:

  Imagine Eleanor, the only child of a wealthy entrepreneur, Mr. Davies. Eleanor anticipates inheriting a substantial portion of her father's estate. While Mr. Davies is still alive, Eleanor's potential inheritance is considered an expectancy. She does not possess a current legal right to any of his assets; Mr. Davies retains full control and could alter his will, spend his fortune, or even choose to disinherit her. If Eleanor were to try and sell her "right" to her father's estate to a third party before his death, that transaction would generally be void because it's merely an expectancy, not a current property right.

• Business Relationship Expectancy (Tortious Interference):

  A small marketing agency, "Creative Campaigns," has been in advanced discussions for several months with "MegaCorp," a large national brand, to manage their upcoming advertising campaign. They've exchanged detailed proposals, and MegaCorp's marketing director has verbally confirmed their intent to sign the contract next week. Suddenly, a rival agency, "Dynamic Ads," learns of these negotiations and deliberately spreads false information about Creative Campaigns' past performance, causing MegaCorp to abruptly withdraw its offer.

  Creative Campaigns had a strong expectancy of securing the contract with MegaCorp. Although no formal contract was signed, the extensive negotiations and verbal assurances created a reasonable expectation of a future business relationship. Dynamic Ads' wrongful interference with this expectancy could lead to a legal claim for damages.

• Economic Benefit Expectancy (Tortious Interference):

  A popular food truck, "Gourmet Grub," has a standing arrangement with a large office park to be the exclusive food vendor every weekday during lunchtime for the next year, with an option to renew. This arrangement consistently generates significant revenue for Gourmet Grub and provides a valued service to the office park tenants. A competing food truck owner, envious of Gourmet Grub's success, intentionally parks illegally directly in front of Gourmet Grub's spot each day, aggressively undercutting prices and actively discouraging customers from approaching Gourmet Grub, specifically to disrupt their business and damage their relationship with the office park management.

  Gourmet Grub had a clear expectancy of continued economic benefit from their established vending agreement and the associated daily sales. The rival food truck owner's deliberate actions to interfere with this expected financial relationship could be considered tortious interference with an expectancy.