Houston Breach of Contract Lawyer

Enforce the deal you made, recover what you’re owed, or defend against claims that you broke an agreement.

Business Litigation

A contract is a promise the law will enforce

Unpaid invoices, broken supply agreements, failed acquisitions, non-compete violations, a buyer who won’t pay the note: when the other side doesn’t do what it promised, your business absorbs the cost. Hayes Hunter PC represents Houston companies, owners and executives in contract disputes, and we’ve recovered substantial judgments for clients, including a nearly $650,000 award for breach of a business sale agreement.

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The short answer

To win a breach of contract claim in Texas, you generally must prove a valid contract, that you performed or tendered performance (or were excused), that the other party breached, and that the breach caused you damages. Remedies include expectation and consequential damages, specific performance, and sometimes rescission. Civil Practice and Remedies Code § 38.001 allows recovery of reasonable attorney’s fees on many contract claims. The limitations period is generally four years.

Key points

  • Texas generally gives you four years to sue for breach of contract.
  • Under § 38.001, a party who prevails on a contract claim and recovers damages can generally recover reasonable attorney’s fees from an individual or organization, but must first present the claim to the other side.
  • The contract’s own terms, such as fee-shifting, limitation of liability, forum, arbitration and notice-and-cure provisions, often decide how a dispute plays out.
  • Penalty clauses disguised as liquidated damages are unenforceable. See our federal case result invalidating a penalty clause that saved our client more than $250,000.

Contract disputes we handle

  • Unpaid invoices, accounts and promissory notes;
  • Supply, distribution, services and master service agreements;
  • Purchase and sale of businesses and assets, including earn-out and indemnity disputes;
  • Partnership, operating and shareholder agreements (see partnership and shareholder disputes);
  • Non-compete, non-solicitation and confidentiality agreements;
  • Settlement agreements and their enforcement;
  • Construction and real estate contracts (see construction disputes and purchase and sale contracts); and
  • Guaranties and personal liability for business debts.

Elements of a Texas breach of contract claim

  1. A valid, enforceable contract: offer, acceptance, consideration and mutual assent on essential terms, and a writing where the statute of frauds requires one;
  2. Performance or tender by the plaintiff, or an excuse for non-performance;
  3. Breach by the defendant; and
  4. Damages caused by the breach.

Remedies

Remedy Purpose
Expectation (benefit-of-the-bargain) damages Puts you where you would have been had the contract been performed.
Consequential damages Foreseeable losses, such as lost profits, that flow from the breach, unless the contract excludes them.
Reliance damages Recovers amounts spent in reliance on the contract when profits are hard to prove.
Specific performance / injunction Orders performance where money is inadequate, as with unique property or restrictive covenants.
Rescission Unwinds the contract, typically for fraud or mutual mistake.
Attorney’s fees and interest Fees under § 38.001 or the contract, plus pre- and post-judgment interest.

Before you terminate a contract or stop paying, call us.

A premature termination can make you the breaching party. Book a discovery call or call (346) 363-0334.

Presentment and the demand letter

To recover fees under Chapter 38, the claimant must present the claim to the opposing party, and the opposing party must fail to tender the just amount owed within 30 days. A well-documented demand letter satisfies presentment, establishes the record, and often produces payment without litigation.

Defending contract claims

Common defenses include no enforceable contract, statute of frauds, prior material breach by the plaintiff, waiver, modification, impossibility, failure of conditions precedent, limitation-of-liability clauses, unenforceable penalties, and limitations. Counterclaims for fraud or breach often change the dynamics.

Litigation or arbitration in Houston

Contract cases are typically filed in the Harris County civil district courts, county civil courts at law for smaller amounts, or the federal court for the Southern District of Texas when federal jurisdiction exists. Many commercial contracts require arbitration. We assess forum, venue and arbitration clauses early because they affect cost and strategy.

Frequently asked questions

Breach of Contract FAQs

How long do I have to sue for breach of contract in Texas?

Generally four years from when the claim accrues, usually when the breach occurs. Contracts sometimes shorten notice periods, though Texas limits contractual shortening of limitations to no less than two years.

Can I recover attorney's fees for breach of contract?

Often, yes. Civil Practice and Remedies Code § 38.001 allows a party who prevails on a contract claim and recovers damages to recover reasonable fees from an individual or organization, after presenting the claim. Many contracts also contain their own fee provisions.

Is a verbal contract enforceable in Texas?

Many oral contracts are enforceable, but certain agreements fall within the statute of frauds and must be in writing, including contracts for the sale of real estate, agreements that can't be performed within one year, and promises to pay another's debt.

What is a "material" breach?

A breach is material when it deprives the other party of the benefit it reasonably expected. A material breach may excuse the other party's further performance, while a non-material breach usually only supports a damages claim.

This page provides general information about Texas law, not legal advice. Reading it does not create an attorney-client relationship. Laws change, and every situation is different, so talk to an attorney about your facts.