Texas Breach of Contract Law Specifics
To get a better understanding of what your rights and obligations are, you need to get familiar with Texas breach of contract law. This article provides the information that will help you make up your mind about how to proceed.
A breach of contract happens when one contractual party does not uphold the contractual terms.
- The existence of a valid oral or written contract—A valid agreement contains a(n):
- Acceptance of the offer
- You—i.e., the plaintiff—have performed your obligations under the contract
- The breaching party—i.e., the defendant—has failed to fulfill their commitments
- You have suffered damages because of the contract breach
To assess the situation and determine remedies, a judge will:
- Examine the terms of the contract—Most agreements include precise penalties for breach of contract instances
- Award damages based on the situation—If the contract does not specify penalties, a judge will decide what damages you are entitled to
In the following table, you can find a list of potential remedies and damages a court might award you:
|Specific performance||If the court awards this type of remedy, they require the defendant to perform obligations under the contract. Specific performance is common for real estate contracts|
|Liquidated damages||Liquidated damages are awarded in the amount of the loss you have suffered as a result of the breach|
|Loss of use, time, or credit reputation||This type of remedy is awarded to compensate for the time you have:
A court could also award damages to compensate for the loss of credit reputation that happened due to the breach of contract
|Reimbursement||You might receive reimbursement for any expenses you have incurred while:
|Consequential and incidental damages||You can get these damages to compensate foreseeable losses|
|Rescission||If a court decides to terminate the agreement, neither party needs to perform agreed-upon obligations any longer|
|Restitution||In case of this type of remedy, both parties must return all gains they have made from the contract|
Keep in mind that the breaching party could raise defenses to attempt to prove they have fulfilled the terms of the contract.
Since litigation is usually pricey, complicated, and time-consuming, you could try to negotiate a settlement with the breaching party outside of court first.
Creating a breach of contract demand letter can be an efficient way to resolve the dispute without involving judges and expensive lawyers. Your letter should include the following:
- Facts and terms of the contract
- A reminder that the other party has not fulfilled the agreed-upon commitments
- A solution to the pending problem, e.g., a new deadline for the delivery of services or goods
A good demand letter should specify all the necessary details that could serve as a clear indication for the other party that:
- They need to honor their end of the deal
- Are not willing to give up on the agreed services or goods
- Will sue them for any incurred expenses and losses
- Cover all the necessary information regarding your case
- Comply with state laws
Our AI-powered app keeps track of all changes to relevant state laws to help you prepare an airtight demand letter without you having to:
- Hire a costly attorney
- Visit a collection agency that can take up to 50% of the collected damages
- Adjust an online template to suit your specific circumstances
To get a demand letter customized to your case, subscribe to DoNotPay and take these steps:
- Use our Client Breach of Contract product
- Answer the chatbot’s questions about the contract and the breaching party
- Provide a new deadline for payment or delivery
- Outline the performed services
- Upload any evidence to back up what you have stated
If the other party does not respond to your letter or is not open to negotiations, DoNotPay can help you sue them in small claims court.
If you are thinking about taking legal action against the breaching party, you need to determine what the statute of limitations is.
In Texas, you can file a claim for a breach of contract within four years from the date when the breach occurred, but keep in mind that there are exceptions. Check out the following table for details:
|Exceptions to the Statute of Limitations in Texas||Specifics|
|Discovery rule||The statute of limitations for a legal claim begins once you:
|Fraudulent concealment||The statute of limitations can be tolled—i.e., legally suspended—if:
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