What You Should Know About Breach of Contract Claims

 Posted on December 07, 2022 in Business Formation

Tarrant County, TX Business Contracts AttorneyFor many business owners and, in fact, people in everyday life, a promise and a handshake mean more than anything that could be captured in a legally binding document. The physical manifestation of a person giving his or her word regarding an agreement or transaction still carries a great deal of psychological weight, even in today’s litigious society.

While it would be wonderful to be able to consistently rely on another’s good word in business dealings, the reality is that contracts are often necessary, and, sometimes, one party fails to comply with his or her end of the deal. When that happens, your only option may be a breach of contract claim.

Three Main Elements

All contracts represent some form of a legally enforceable promise. Some, of course, are more complicated than others, but all provide certain rights and responsibilities to each involved party. In the context of business, most contracts address the purchase of items, goods, or services rendered. When the other party fails to comply with the terms of an agreed-upon contract, you may be able to bring a claim for breach of contract before the court. To win your claim, you will be required to show:

  • A Valid Contract Exists. Contracts can be written or oral, although oral contracts may be more difficult to prove. To prove the validity of the contract, you will need to demonstrate that there was an offer, that the offer was voluntarily accepted, and the contract included reasonable consideration for each party.

  • A Breach of the Terms Occurred. You must be able to point to specific parts of the contract that the other party has violated. For example, if the other party was contractually required to deliver a certain product by a designated date, once the date has passed and the product has not been delivered, the court may determine the missed deadline to be a breach of contract. In general, the breach must have had an effect on the value of the contract to you in order for the claim to be considered.

  • The Breach Caused Damages. Beyond the fact a provision of the contract was violated, you will also need to prove that you or your business suffered harm due to the breach. Damages generally include lost money, time, and other measurable losses, and, in some cases, the court may also award punitive damages as well. Provisions in the contract that address breaking the contract, including specified penalties or fees, could also be enforced.

While you have every right to enforce a valid contract, you will also want to be sure that you have fulfilled your contractual obligations before moving forward with a claim. You cannot expect a court to hold the other party responsible for breach of contract if you have breached its terms as well.

Contact a Fort Worth Breach of Contract Attorney

For more information about breach of contract claims or any other business litigation concern, contact an experienced Tarrant County business law attorney at Gonzalez Law, PLLC. At our law firm, we take pride in helping business owners protect their companies while taking steps toward increasing success and profitability. Call 817-349-7330 to schedule a free consultation today.

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