What is a Breach of Contract?
To breach a contract, a party must fail to perform a contractual obligation. In Texas, a breach of contract requires 1) a contract exists, 2) the plaintiff performed by tendering performance or the actions are excused, 3) the defendant breached the contract, and 4) the breach caused damages.
A material breach is when a party has failed to uphold the contract in such a way that the purpose or essence of the contract has been violated. A minor breach is when a party has only failed to perform a small part of the contract, or has performed the contract imperfectly. An immaterial breach will not allow termination of the contract , but a party can still sue for any damages incurred.
The legal implication is whether a party will still be entitled to claim damages after the breach. If the breach is deemed to be a material breach as defined above, a party has the right to maintain a lawsuit against the party who did not uphold their agreement. If a minor breach occurs, as long as the aggrieved party has no further material obligation to fulfill under the contract, the third party may sue the breaching party for damages. If the person who was in breach materially completed their obligation under the contract, the third party can no longer sue for breach of contract, even if the original settlement was imperfect.
These rules can seem complicated, but an experienced breach of contract lawyer in Houston can help you.
Reasons to Hire a Breach of Contract Attorney
Hiring a breach of contract lawyer offers several benefits that can streamline the process and increase the likelihood of a favorable outcome. Contract disputes can be complex, involving intricate legal language that may be difficult for a layperson to understand. A breach of contract lawyer is equipped to decipher these details, identify whether a breach has occurred, and determine if there are valid defenses. They can assess the strength of your case and advise you on the best course of action.
A breach of contract lawyer can negotiate on your behalf with the opposing party to try to reach a settlement before resorting to litigation. These attorneys are skilled in the art of negotiation and can present your case to the other party in a way that maximizes your chances of reaching a favorable outcome. They can draft settlement agreements that are in your best interest and ensure that all terms are met post-settlement.
If your case cannot be settled and litigation becomes necessary, having a breach of contract lawyer by your side will be invaluable. They will prepare all necessary court documents, represent you throughout the litigation process, and advocate on your behalf to secure the best possible outcome. Additionally, a breach of contract lawyer will be essential if the case proceeds to trial, as the rules of evidence and the complexity of the judicial process require a deep understanding of legal procedures and practices.
Selecting the Most Effective Attorney in Houston
When selecting a breach of contract lawyer, there are several key considerations to help you make the right decision for your unique needs. Houston contract law has many specific ins and outs that require familiarity with local laws as well as general knowledge of the contract law as a whole. A few of the key considerations in selecting an attorney for breach of contract cases include: Experience: If you have a breach of contract issue, always look for a lawyer who has significant experience directly related to your issue. Although Houston contract law may be very specific and always changing, lawyers with years of specialization and hands-on experience maintain a superior level of knowledge in this area. Contract Law: While some attorneys specialize in wills and trusts or personal injury litigation, choosing a lawyer who specializes in contract law is vital to ensuring that your legal issues are handled more quickly and effectively. Houston attorneys who specialize in contract law understand the complicated language of contracts, as well as specific clauses and sections that might help you in negotiations and/or settlement talks. Client Reviews: While no one loves to pay for legal services, you want to ensure that the dollars you spend are worth it. Checking reviews on sites like the Houston Bar Association and Yelp can help you avoid attorneys who don’t produce results. Additionally, you can ask friends and family members for their recommendations, so you can feel confident that you will be taken care of from start to finish. Local Knowledge: Houston contract law is much different from contract laws in the rest of the country, so you want to be sure that the lawyer you choose has a thorough understanding of local laws and regulations. Always verify licenses and credentials to ensure that you are getting the best representation possible.
Types Commonly Occurring in Houston
Houston is home to one of the busiest commercial sectors in the United States. From real estate to construction to energy, much of the economic activity in Houston involves contracts of some sort. When it comes to business contracts, the work usually goes off without a hitch. Houston businesses enter into contracts with the reasonable assumption that all sides will live up to their obligations. But disputes are an unavoidable part of doing business. Sometimes, all is required is a firm reminder of the consequences of a breach of contract. Other times, however, a dispute regarding a breach can carry consequences reaching long into the future. The immense economic activity present in Houston naturally leads to a greater number of potential disputes, and the volume of court cases and no contest arbitration in Harris County reflects that fact. Businesses often find themselves facing the following common contract disputes.
Oil & Gas Contracts
Houston is ground zero for the United States energy sector. Energy activity accounts for a significant portion of the state’s economy, and the vast majority of contracts for the purchase and sale of oil and gas take place here. With deals this big, it should be no surprise that disputes are frequent. Energy contracts are almost universally detailed and technical. While most energy contracts are capable of being understood by the average person, they are rarely brief. Even impersonal disputes over the technical details of an energy contract hold the potential for massive damages. Due to the complexity of these disputes, energy breaches are often better brought to arbitration.
Real Estate Contracts
Rarely does a day go by in Houston without a news story about real estate development in the metro area. Houston is among the fastest-growing cities in the country, and the Houston area has long been lauded as one of the best markets for first-time home buyers. Real estate contracts are far and away the most common type of contract disputes in Houston. Most of these occur in the context of residential home purchases and sales, but developers and investors also use Houston real estate contracts for many of their deals. Outside of residential home purchases and sales, real estate contracts often deal with issues like leases, tenant relationships, or zoning. Even a small issue can quickly grow into a costly court battle. Even some contracts meant to resolve disputes relating to real estate contracts turn out to be the source of an entirely new dispute.
Resolving the Contract: Legal Pathways
If you have suffered damage due to a breach of contract, your lawyer can help you determine how best to proceed. You may have a number of different legal options for resolving the breach of contract, including:
- Damages. The most common remedy for breach of contract is a damage award. The injured party has the right to demand money sufficient to achieve a make-whole position; that is, a position as close as possible to the one he would have been in, had the contract been performed.
- Specific Performance. There are times when money is not enough. If the non-breaching party cannot be made whole through an award of damages, specific performance, or fulfillment of the contract as agreed to by both parties , may be required.
- Rescission. If a party to a real estate or other contract has been induced into agreeing to the terms of a contract through fraud, misrepresentation or duress, he has the right to rescind (or cancel) the contract. Rescission effectively allows the injured party to void the contract, returning the parties to their positions prior to its formation.
- Reformation. A contract may require "paperwork correction" due to a mistake. If the parties to a contract did not understand it, and an error in drafting exists in the written terms, the contract can be reformed to reflect the original intent of the parties.
A Houston breach of contract lawyer can help you choose the option that is most likely to result in a successful recovery.
Legal Proceedings for Breach of Contract
A typical process for breach of contract starts with the filing of a complaint and possible request for specific performance. An attorney can help you file a complaint, and at this stage, very little information is made available to the parties. The Court will set up a short case management conference within a month or two after a complaint is filed. The judge will usually try to have everyone informally work out a resolution without the need for formal discovery. If the parties can’t make progress, the Court decides on a relatively expensive schedule to get the ducks in a row, starting with exchange of documents and interrogatories (i.e. questions answered under oath), followed by depositions (testimony of the parties and witnesses).
Most cases are resolved at that point. The parties usually want to either settle the case before the cost gets get out of hand, or they file motions for summary judgment to dispose of the case without the need for a trial. Sometimes the judge will refer the parties to the alternative dispute resolution program (ADR) through the court to try to work out settlement. Any time before or after ADR, the parties can informally settle the case or mediation. If the parties can’t resolve the case, there’s almost always a trial – most of these cases don’t get settled or mediated, not because people don’t want a sensible result, but because nobody can predict where a particular judge will go on things like whether a contract is ambiguous, or what other contract interpretation principles will apply, such as the parol evidence rule, the four corners rule, the custom and usage rule, etc.
If a jury trial is held, the case will be submitted solely to the jury and the judge sits back and waits to see what happens. When the jury comes back with a verdict, almost always, somebody will be disappointed. An attorney can provide very valuable advice about the potential results and the odds going into trial. After trial, it will almost always be worth hiring a lawyer to post judgment collection, appeal, and maybe even for a new trial or motion for judgment notwithstanding the verdict (JNOV).
FAQs on Breach of Contract Lawyers
How much will my breach of contract lawyer in Houston cost to hire?
There are a few different ways that breach of contract lawyers in Houston may charge you for their help with a dispute. Some bill by the hour, which is perhaps the most standard method of billing in today’s legal market. Others use a retainer fee or flat fee system, charging you an upfront rate to retain their services and work on your case.
What will you need to have ready for your initial consultation with a Houston breach of contract attorney?
When you meet with your Houston breach of contract lawyer for the first time, make sure you’ve prepared adequately for the discussion. Bring any legal documents regarding the contract, as well as any correspondence such as emails or texts surrounding the contract and the breach. Your lawyer will want to know exactly what the terms and conditions of the contract were and what is being asked or offered now based on the breach that has occurred. If you are unsure whether something is relevant to your case, err on the side of caution and bring it along. It is better to have too many documents than not enough for your Houston breach of contract lawyer.
Consulting a Houston Breach of Contract Attorney
The first step in retaining a Houston breach of contract attorney is to simply call them or send an email. Some attorneys will offer a free initial consultation, while others will charge a fee. During the consultation, legal fees will be discussed, along with the finer details of your contract. There are a few questions you need to answer before hiring a breach of contract attorney in Houston. Answering them truthfully will help your legal team help you. The questions are fairly in-depth and you may require your attorney to fill in the blanks. They will offer you some sage advice concerning contract law and your best options .
- What contract or contracts were breached?
- Who was involved in the breach?
- What caused the breach?
- Why did the breach occur?
- How was the contract breached? Customer service? Delivery?
- When did you discover the breach?
- Where was the contract breached? In Houston?
- At what point did you become aware of the breach?
These questions will give your attorney a clear idea of your circumstances. If they are still unsure, they will ask for additional details about your breach of contract case, such as the extent of your financial loss and how you would like them to proceed. It is important to work with an attorney who has experience offering the most effective solutions when it concerns contracts and business. You want the best possible outcome when you have hired a breach of contract attorney.