Houston Breach of Contract Attorney
Many business transactions, between both individuals and companies, include the use of a contract. Both written and oral agreements may constitute a legally binding contract, though written ones are typically suggested in the event that a dispute should arise. Whenever a contract has been made and one of the parties involved fails to hold up their end of the bargain, they are considered to be in breach of contract.
A breach can occur in a number of ways. When parties agree that certain actions will be taken or certain payments will be made, deviation from this arrangement can be considered breach. For instance, if a carpenter is hired to build a custom frame for a pre-arranged amount and the customer then refuses to pay the full amount, this is in breach of their contract and the carpenter has grounds to file a claim.
If a breach of contract claim is successful in court, the party at fault can face financial liability for different types of damages, including:
- Consequential damages – the party at fault must pay the other party an amount which restores them to the same financial state as before the contract was made.
- Punitive damages – this payment is meant to penalize the party at fault for breaching the contract.
- Liquidated damages – when the amount to be paid in the event of a breach is written in the contract itself, the court can enforce this amount as liquidated damages.
- Nominal damages – a minor amount awarded to the non-breaching party if their claim of breach is successful but there was little monetary loss.
In situations where monetary damages are not applicable or legal, the court may assign an “equitable remedy”. These require one or both parties to take action to resolve the dispute. For example, the court may order a specific performance, meaning that a party must take a certain action under the contract, or a rescission may be ordered, essentially voiding the contract altogether.
Contact Houston Commercial Litigation Lawyer Kevin Powers for a free case evaluation today.