Contract Disputes
In Texas, one of the most common causes of action in civil courts is breach of contract. Contracts, even those drafted meticulously, and the behavior under them can give rise to contract disputes. Texas law provides various remedies for situations in which one party cannot or does not adhere to the terms of a contract. If one party can prove another party is in breach, they may be legally eligible to recover financial damages and/or other remedies. While many different breaches can occur, in order to be truly actionable, your alleged breach must be a material breach. This means the breach caused you to be deprived of the actual value and purpose for which you entered into the contract.
Elements of Breach of Contract
In order for a claim for breach of contract in Texas to be successful, the party claiming the breach must be able to prove up all of the following elements:
A valid contract exists. In order to be valid, a contract must involve an offer, acceptance, and consideration;
The party alleging the breach adhered to the terms of the contract;
The party in breach failed to fulfill its obligations under or the terms of the contract; and
Damages resulted to the party alleging the breach occurred.
If you can prove all of these elements, the damages available for contract disputes can include money lost as a result of the breach, future lost profits, compensation for time wasted, attorneys’ fees, and any other damages that align with the terms of your contract. However, often money alone can’t resolve contract disputes; therefore, there are four types of equitable remedies available: (1) recission, which voids the contract, (2) specific performance, which orders the party in breach to perform, (3) reformation, where the court orders a change to the contract, and (4) injunction, where the breaching party is ordered to do or stop doing a specific action.
Types of Contract Disputes
Contract disputes are common across virtually all industries across Texas and worldwide. Some of the most common contract disputes involve agreements most businesses utilize on a routine basis and include:
Commercial leases
Non-Compete agreements
Contracts for the sale of goods
Non-Disclosure agreements
Severance agreements
Service contracts
Buy sell agreements
Vendor and supplier agreements
Independent contractor or consultant agreements
Houston Contract Litigation Lawyer
In Texas, the law limits the time within which contract dispute lawsuits can be filed. The Texas Civil Practice and Remedies Code mandates only four years from the date of breach for all claims for breach of contract. It is important not to wait that long to speak with a lawyer, as evidence can disappear and your situation can wind up costing you far more than it would have if you had reached out to competent counsel sooner. Make sure you have the right contract disputes lawyer on your side and contact Tim Leonard today for more information.