HOUSTON BREACH OF CONTRACT LAWYER

Breach of Contract Definition

What is a Breach of Contract?

Both the insurance company and the policyholder are bound by law, once they’re both committed to the agreement and the policyholder starts making payments, per the policy guidelines set in place by both parties. The insurance provider must provide the policyholder with the financial assistance agreed upon in the insurance contract if an accident takes place.

If the insurance provider or the insured at any point, does not fulfill all of the outlined terms and conditions in the contract, or if the insurance provider acted in bad faith, a breach of contract occurs.

Breach of Contract Elements

What Makes a Contract Legally Binding?

A binding contract is any agreement that is enforceable by law. This means that if you sign a binding contract and don’t fulfill out your end of the deal, then the opposing party can take you to court.

In order for a contract to be binding, it needs to include the following:

• Offer and acceptance: One party needs to offer something of value, whether this be money, right, services, etc., and the other party must accept this offer
• Consideration: Both parties must receive a benefit from the contract.
• Mutuality: Both parties must expect to be bound to the contract and fulfill the conditions stated in that contract
• Legality: The contract must obey all federal, state, and local laws. No judge is going to force someone to act illegally.
• Capacity: All parties must have the mental capacity to sign the contract. You cannot enforce contracts with young children, in some cases, the elderly, or those who’s mental state has been temporarily or permanently compromised.

If a contract contains those elements, in the state of Texas, it is considered binding and therefore, enforceable by law.

Contract Elements

A few extra elements do exist, for specific types of contracts:

For example, some contracts must be in writing. This typically pertains to real estate purchases or agreements that may last longer than a year. For these types of contracts, state laws frequently demand written contracts.

You will need to verify with your state’s legislation, as every state does have different policy on written agreements.

While having your business agreements on paper isn’t always necessary for them to be legally binding, this is a good practice to follow. Verbal contracts are more difficult and sometimes, even impossible to establish.

When agreements are drafted in writing, both parties are held to a better understanding.

Agreement Between Parties

Although this element may seem self-evident, all parties must agree on all points, before the courts consider a contract legitimate.

Many circumstances exist in which the boundary between a full agreement and a preliminary conversation about the potential of reaching an agreement is blurred.

For these gray areas, several principles define whether a legally binding agreement exists.

Exchange of Value

In addition to both parties agreeing to conditions, both parties must trade something of value, in order for a a contract to be legitimate. 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.

What Is a Contract Dispute?

When parties disagree on the terms of the contract, a contract dispute occurs.

Courts will only consider contracts in which both parties are aware of and accept the conditions to be legal. If this agreement isn’t mutual, either party may contest the contract in court.

Contract disputes generally arise when one party doesn’t fulfill their obligations under the contract.

Contract Violations

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 non-material breach, also known as a minor 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.

A Breach of Contract Occurs When

One party doesn’t have to avoid obligations, altogether, in order for a breach of contract to take place. A breach of contract can occur when the terms aren’t fulfilled to the required specifications outlined in the contract. This can include requiring the terms of the contract to be completed by a specific agreed-upon date.

One or both parties may seek damages or to have the contract’s provisions legally enforced, in the event of a contract breach. However, ideally, issues may be addressed through mediation before filing a lawsuit. Another type of alternative conflict resolution is binding arbitration.

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 Happens if There is a Breach of Contract?

In the case of a contract 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, when drafting a contract, 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 lawyers as soon as you hear of a suspected breach of contract.

How to Sue for Breach of Contract?

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:

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.

Recovered Contract Breach Lawyer Fees

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 compensation for your breach of contract lawyer costs and other legal expenses.

Our Houston breach of contract lawyers can assist in virtually any insurance breach of contract, including but not limited to:

• Health insurance claim breaches
• Long-term care breaches
• Managed care litigation in Texas
• Property damage claims, including
  • Acts of God
  • Commercial property claims
  • Fire claims
  • Flood claims
  • Hurricane claims

Houston Breach of Contract Lawyer Benefits

It’s worth noting that with the aid of a Houston contract lawyer, many contract violations may be prevented, in the first place. When you hire an attorney for the purpose of analyzing or drafting your contracts, they will have more foresight and more appropriately word the contract in order to prevent the other party from breaking the agreement.

A Houston breach of contract lawyer may also go through any existing contracts to see whether they have terms that address breach of contract and how the parties will address the situation, should a breach of contract occur.

Experienced Houston Breach of Contract Lawyer

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 breach of contract lawyers will not hesitate to file an insurance bad faith lawsuit or a breach of contract claim to get you the compensation you deserve.

Call us at 713-622-7271 for a free consultation, or fill out our confidential online form for a free initial case review.