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Common Questions about Contract Law in Texas

contract law

Contracts are an everyday part of many businesses in Texas.  These documents are designed to identify the duties and rights of each party subject to the terms of the contract, as well as identifying how disputes will be managed. Contracts are important for protecting your rights and business interests. Take steps to avoid catastrophic losses by reviewing some of the most common questions about contract law in Texas, and contacting Daic Law to learn more about contract law and your business.

Common Questions about Contract Law in Texas

Q: What is a Contract?

A: A contract is an agreement between two or more parties that is legally binding.  Businesses enter contracts with other businesses and a variety of third parties for many reasons. Contracts may be written or oral. They may include a wide variety of business matters.

Q: How do I Know if a Contract was Breached?

A: A breach of contract occurs when one party does not uphold his or her obligations as stated in the contract.  This may include a minor breach that is easy to resolve, or a significant breach requiring legal action.  Major breaches that affect the subject matter of the contract are called material breaches.

Q: How do I Prove that a Contract was Breached?

A: To prove that a contract was breached, and to file a lawsuit, you need to establish the following:

  • Your contract was valid and enforceable
  • You upheld, or were excused from upholding, your duties outlined in the contract
  • The other party failed to uphold his or her obligations in the contract
  • This failure to uphold obligations (breach) caused you harm

Q: What Sort of Damages can I Pursue after a Contract Breach?

A: If you suffer harm due to a breach in contract, you may be eligible to pursue damages including:

  • Economic Damages – Restores you to the position you were in before the harm occurred.
  • Specific Performance – Awards additional damages, but only relevant to unique and very specific contracts.
  • Liquidated Damages – Pre-determined damages outlined in the contract or by other means, such as “earnest money”.
  • Rescission – When the court decides to restore you to the position you were in prior to contract execution. Most commonly used in cases of willful misrepresentation.

The type of contract, the nature and severity of the breach, and other factors may all determine what sort of damages you can pursue.

Q: Do I need an Attorney to Manage a Breach of Contract?

A: If your contract was simple and the breach small, you may already have outlined terms for managing disputes. However, if you are unsure of what to do, if the breach was material or significant, you should definitely contact an attorney. You should also contact an attorney if criminal behavior was involved in the breach.

Get Answers to Contract Law Questions

At Daic Law, we see the devastating consequences of improperly drafted, maintained, or resolved contracts every day.  Contact our office to find out how we can help you with your contract law matter.  Send us an email at, or call us at 877-893-6040.

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