Breach of Contract
Chances are, if you own a business, your company is party to several contracts at any given time. Commercial contractual relationships may include agreements with landlords, business partners, current and former employees, suppliers, creditors, insurance companies, etc. It is not surprising then that one of the most, if not the very most, common types of commercial lawsuits are contractual disputes, including breach-of-contract suits. A breach of contract happens when a party to the contract does not meet its responsibilities and duties as stated in the contract.
Although many people believe contracts are written and signed documents, the truth is that contracts don’t have to be in writing to be enforceable. Oral contracts are permissible under Texas law. Furthermore, Texas law and the Uniform Commercial Code also allow contracts to be implied between parties in a recurring course of business. Putting a contract in writing is the best practice, but it is important to realize that you may be subject to contracts that haven’t been reduced to writing.
If someone has breached a contract with your company, you should consult with an experienced commercial lawyer. Sometimes you may be able to reach a pre-litigation settlement or simply renegotiate the contract to make it work better for both parties and thus avoid litigation. Other times, litigation is inevitable. In those situations, a skilled business litigator is crucial to your case. Remember that a party who proves breach of contract in court is entitled to recover payment for attorneys’ fees in a breach of contract suit.