HOUSTON BREACH OF CONTRACT ATTORNEY
INSURANCE & CONTRACT CLAIMS
Houston Breach of Contract Attorney
At Reich & Binstock in Houston, we are well-versed in Texas’ prompt-pay legislation, and we can assist you in obtaining correct payment if an insurer fails to do so. We provide legal assistance to anyone involved in a breach of contract dispute. Call our firm at 713-622-7271 or fill out our online intake form to speak with a breach of contract attorney.
What Is Legally Considered a Contract?
To be legally binding, most contracts simply require two parts.
- After one side makes an offer and the other accepts it, all parties must be in agreement.
- Something of value, such as cash, services, or products, must be traded for something else of worth, or a promise to swap such an item for something else of value.
Contracts must be in writing in a few instances to be valid. For real estate purchases or agreements that may last longer than a year, state laws frequently demand written contracts. You’ll need to verify your state’s legislation to see which contracts are required to be written. Even though it isn’t legally necessary, putting business agreements on paper is usually a good idea because verbal contracts can be difficult or even impossible to establish. Below, we discuss the two requirements for a legal contract in a little more depth.
Agreement Between Parties
Although it may seem self-evident, all parties must agree on all main points before a contract can be considered legitimate. There are many circumstances in real life where the boundary between a full agreement and a preliminary conversation about the potential of reaching an agreement is blurred. To further explain these gray areas, the law has created several principles that define whether a legally binding agreement exists.
A valid contract occurs whenever one party gives an offer and the other approves it, according to the most basic norm of contract law. This can be done orally or in writing for most types of contracts.
Exchange of Valuables
A contract is not legitimate unless both parties trade something of value in expectation of the contract’s fulfillment, in addition to both parties agreeing to the conditions. The necessity that items of value be traded distinguishes a contract from a generous remark or a one-sided pledge, neither of which are legally binding.
How Do You Draft a Contract?
A contract must fulfill certain conditions in order to be legally valid and binding. Contracts are usually regulated by the laws of the state in which they were signed. Contracts for the sale of products, on the other hand, are controlled by the Uniform Commercial Code (UCC), which sets forth basic rules for commercial transactions. Below, we provide a basic overview of the drafting process for contracts.
How to Write a Valid Contract
Before you start creating a contract, make sure you have all of the necessary information regarding the transaction. The contract should include the participants’ names, the contract’s effective date, and a summary of the products or services to be transferred.
A contract’s provisions should be drafted in precise language, with all words well defined. Any uncertainty can only lead to miscommunications or disagreements between the parties, thus increasing the likelihood of litigation. The exchange’s conditions should be set down in great detail. If the contract is for the sale of products, it should include a description of the goods, the number of exchanges, and the total sale price. It should also include information about when and where the products will be transferred.
A contract’s terms can be changed at any time as long as both parties agree to the modifications. They must append a formal addendum with their names and dates to the initial contract if they choose to do so.
A termination clause is an excellent idea to add. A termination clause specifies how and when the contract will end, as well as how long it will run. If the contract is for a one-time event, the termination clause should specify that it will cease after the transaction is completed. If the contract governs an ongoing connection, the termination clause can specify how many days must pass before the contract can be terminated.
What happens if one of the parties breaks the contract should always be included in the contract. Depending on whether a court considers a breach small or substantial, the non-breaching party typically has some recourse.
What Is a Contract Dispute?
When one or perhaps both parties to a contract differ on the terms and circumstances, a contract dispute occurs. A contract is only legitimate if both parties are fully aware of the conditions and ready to accept them. The agreement may be contested in court if it is not mutual. Contract disputes generally arise when one of the parties fails to fulfill their obligations under the contract, or when they fail to perform what they agreed to do. The following are examples of contract violations.
- Material breach: A material breach occurs when one party fails to fulfill his or her obligations, causing the contract to be irreparably damaged. The party who has been harmed by this breach has the right to sue the party that has broken the contract for damages.
- Non-material breach: A minor breach, also known as a non-material breach, occurs when the contract’s essential terms are not altered. When a small breach occurs, both parties must still fulfill the contract, but the party that has not broken the agreement can still sue the other for damages.
When Does a Breach of Contract Occur?
A contract breach can occur not only when the conditions of the contract are not fulfilled at all, but also when they are not fulfilled in compliance with the required specifications or they do not occur on time.
One or sometimes both parties may seek damages or to have the contract’s provisions legally enforced in the event of a contract breach. Ideally, issues may be addressed through mediation before filing a lawsuit. Another type of alternative conflict resolution is binding arbitration.
What Should I Do if a Breach of Contract Occurs?
In the case of a breach, a proper contract should clearly set out your alternatives. This outlines how you can seek legal redress for your losses in the event of a breach. While a contract may outline particular rights, you should always take precautions to ensure that such rights are protected. We can analyze the details of the specific contract and assess your alternatives if you contact our experienced Houston breach of contract attorney as soon as you hear of a suspected breach of contract.
What Is Tortious Interference?
Tortious interference with contract and tortious interference with potential economic gain are the two forms of tortious interference. Both involve circumstances in which one party deliberately undermines the commercial transactions or connections of another. The main distinction between the two is whether or not there is a contract in place.
When someone wrongfully induces a breach of contract between you and a third party, this is known as tortious interference with a contract. A third person improperly interferes with a commercial connection or an expected business transaction under the second form of tortious interference.
What Are the Remedies for a Breach of Contract in Texas?
Contract remedies are, in general, intended to be simply remedial in nature. In breach of contract disputes, Texas courts do not actually punish parties. The non-breaching party is usually entitled to a remedy that puts them in the position they would have been in if the breaching party had truly fulfilled their duties under the contract. Breach of contract remedies can take many various forms in practice, including the ones listed below.
- General damages: General damages are the fundamental financial losses that result immediately from a violation of contract in Texas. These are the losses that may have been expected as a result of the contract violation. This can include things like expense compensation.
- Special damages: In some circumstances, Texas courts award special damages to non-breaching parties. These are the consequences of the breach. In a breach of contract action, for example, certain firms may be able to collect compensation for lost earnings.
- Equitable relief: Non-breaching parties may be eligible for equitable remedy in addition to monetary compensation. Injunctions, particular execution of the contract, and contract modification or rescission are all instances of equitable remedies.
Finally, Texas law provides for reasonable attorney’s fees to be recovered. If your business has been harmed as a result of a breach of contract, you may be entitled to cash compensation for your attorney costs and other legal expenses.
What Are the Benefits of Having a Breach of Contract Attorney?
It’s worth noting that with the aid of a breach of contract attorney, many contract violations may be prevented in the first place. When you hire an attorney to analyze or create a contract for you, they will be able to add the appropriate wording to prevent the other party from breaking it. A breach of contract attorney may also go through any existing contracts to see whether they have terms that address breach of contract and how the situation will be handled if it happens.
Contact a Houston Breach of Contract Attorney Today
When you experience a breach of contract, you need the skill of the attorneys at Reich & Binstock. With almost 30 years of experience fighting insurance companies on behalf of customers, our Houston lawyers will not hesitate to file an insurance bad faith lawsuit or a breach of contract claim to get you the compensation you deserve. Our knowledge and experience will go to work for you as soon as feasible. Call us at 713-622-7271 for a free consultation, or fill out our confidential online form for a free case review.
There is a never a fee unless we recover on your behalf.