What Is a Breach of Contract in Texas?
Contracts are the foundation of many business relationships. But what happens when one party fails to hold up its end of the deal?
A breach of contract in Texas generally occurs when a party fails to perform an obligation required by a valid agreement. For businesses, a breach can lead to financial losses, disrupted operations, and, in some cases, commercial litigation.
What Are the Elements of a Breach of Contract Claim in Texas?
To successfully pursue a breach of contract claim in Texas, a plaintiff generally must establish four elements:
- A valid contract exists;
- The plaintiff performed or tendered performance under the contract;
- The defendant breached the contract; and
- The plaintiff suffered damages as a result of the breach.
The contract itself is often central to the dispute. Courts may look to the agreement’s language to determine what each party was required to do and whether those obligations were satisfied.
What Are Common Examples of Breach of Contract?
A breach of contract can take many forms in a business relationship, including:
- Failure to make a required payment;
- Failure to provide promised goods or services;
- Missing contractual deadlines;
- Violating confidentiality or non-disclosure obligations; or
- Failing to satisfy another material term of an agreement.
Not every disagreement between contracting parties necessarily constitutes a breach. The specific terms of the agreement—and the facts surrounding the alleged breach—matter.
What Damages Are Available for Breach of Contract in Texas?
When a breach causes financial harm, the non-breaching party may be able to recover monetary damages. Generally, contract remedies seek to place the non-breaching party in the position it would have occupied if the contract had been performed.
Depending on the contract and circumstances, potential remedies may include monetary damages or, in appropriate cases, specific performance or other equitable relief.
How Long Do You Have to File a Breach of Contract Lawsuit in Texas?
Breach of contract claims in Texas are generally subject to a four-year statute of limitations, although the applicable deadline can vary depending on the type of contract, the claim, and other circumstances.
Businesses should also review their contracts carefully. Contractual notice provisions, dispute-resolution procedures, and other requirements may affect the steps that must be taken when a dispute arises.
Facing a Business Contract Dispute?
Contract disputes can escalate quickly, particularly when significant payments, ongoing business relationships, or critical contractual obligations are involved.
If your business is facing a potential breach of contract or another commercial dispute, contact Griffith Barbee to discuss the agreement, available remedies, and potential next steps.