Houston Breach of Contract Attorneys

Resolving Contract Disputes and Breach of Contract Litigation in Texas

Contracts are at the heart of business transactions. At Hendershot Cowart P.C., our breach of contract lawyers can help you and your business prevent or mitigate any resulting damage from a breach of contract when a partner, vendor, or third party violates the terms of a contract or fails to perform any promise contained in the binding and legally enforceable contract.

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To schedule a consultation with a breach of contract lawyer, call (713) 909-7323 or contact us online.

What are the Different Types of Contract Breaches?

Contracts are created to establish the responsibilities and expectations of parties that choose to engage in business transactions with one another, whether they involve business to business transactions, construction or licensing agreements, or the employee / employer relationship. They also provide for recourse and remedies for when things don’t go as planned.

The three types of contract breaches that can lead to disputes include:

  • Non-material breach
  • Material/fundamental breach
  • Anticipatory breach

Non-Material Breach of Contract

Also referred to as a partial breach, a non-material breach occurs when one party fails to perform a minor, nonessential obligation stipulated in a contract, even when the specified product or service is ultimately delivered. This may occur when one party meets all demands made by the other party in a contract, but completed them a day after completion was requested.

Unless there were terms in the contract specifying deadlines or that time was of the essence, a reasonable delay would be considered a minor breach. In cases involving a non-material breach of contract, the non-breaching party is entitled to damages, if it can be shown they actually suffered damages, but is not typically prevented or excused from performance.

Material / Fundamental Breach of Contract

A breach of contract is considered material if the breaching party failed to complete terms fundamental to the contract’s satisfactory completion. A material breach may mean the contract cannot be completed.

Determining whether a breach of contract can be considered material requires a review of the unique facts involved, including the extent to which the breaching party has already performed, whether the breach was a result of negligence, an honest mistake, or an intentional act, the likelihood of the breaching party performing the rest of the contract, how the non-breaching party was deprived of benefits they reasonably expected, and whether the non-breaching party can be adequately compensated.

A material breach of contract may provide the right to sue for damages if damages can be shown. If damages cannot be reasonably calculated – such as in the case of theft of trade secrets or violations of non-compete or non-disclosure agreements – the non-breaching party may seek an injunction to stop the other party from continuing the breach. Depending on the nature of the relationship between the two parties, the non-breaching party may also choose to request a court order requiring all parties to complete contractual terms, or re-form the contract to facilitate performance and completion by the other party.

Anticipatory Breach of Contract

An anticipatory breach of contract, or anticipatory repudiation, occurs when it becomes clear that one party will not meet its contractual obligations, such as when one party indicates it cannot uphold its part of the contract or refuses to do so. This allows the non-breaching party to terminate the contract and sue for damage prior to the breach.

Mitigating damages and avoiding unnecessary costs in cases involving an anticipatory breach requires swift action by the non-breaching party. In construction contracts, for example, a non-breaching party can hire a new contractor to complete a project when the first indicates they do not have the ability to perform in order to mitigate damages, and then sue for what was lost.

Types of Contract Disputes We Can Help With

Our law firm represents both plaintiffs and defendants in a wide range of breach of contract disputes, including:

To speak with our contract dispute team call (713) 909-7323 today.

What Remedies Are Available for a Breach of Contract?

Under Texas law, remedies for a breach could include:

  • Compensation, such as actual, reliance, restitution and liquidated damages
  • Quantum meruit (recovery of the value of services performed)
  • Specific performance of contract terms
  • Release from contractual obligations
  • Revision of a contract to reflect a mutual mistake

What Are the Equitable Remedies Available for Breach of Contract in Texas?

What if money damages alone can't make things right? In that case, you may be entitled to an what is known as an “equitable remedy.” In Texas, in addition to suing for financial damages, there are four available equitable remedies for breach of contract disputes:

  1. Rescission. Rescission is an agreement to void the contract and return both parties to the position they were in prior to the agreement. When the court grants rescission as a remedy, the contract and the parties’ rights and liabilities under it are cancelled, and any money exchanged must be returned. This remedy for breach of contract is not available if substantial performance on the contractual obligations have already been completed by one party or another.
  2. Specific Performance. Another option is to go to court and ask for specific performance, namely ask the court to order the breaching party to do everything that was promised. A court will not order specific performance as a remedy for breach of contract unless it can effectively oversee compliance with the order. For example, a court will not likely order a party to perform a series of activities over an extended period.
  3. Reformation. Reformation is essentially agreeing to a different deal. If one party breaches the contract, the other party is no longer bound by the agreement. But they wouldn't have entered into the agreement in the first place if they didn't have mutual interests. Reformation allows the contract to be tweaked or "re-formed" so that both parties want to comply with the terms. It’s a way of clarifying a contract that was based on a misunderstanding, a mistake, or one party's failure to disclose all the relevant information.
  4. Injunction. An injunction is a court order that tells a party either to do something or refrain from an action that would be harmful. This remedy is a way of maintaining, or restoring, the status quo.

When you work with Hendershot Cowart P.C., you work with our entire legal team. Our clients are backed by attorneys with more than 100 years of combined legal experience in Texas contract law, business fraud, and other types of business disputes. We are very familiar with what it takes to win a breach of contract lawsuit. We are here to guide you every step of the way – whether the contract dispute is resolved through mediation, arbitration, or litigation.

Our contract law attorneys also specialize in drafting, reviewing, and negotiating business agreements and contracts, handling thousands of such matters each year.

How can you repair the damage done by a broken contract? Call (713) 909-7323 or contact us online to discuss the remedies for breach of contract.

Licensing Agreement Disputes and Violations

Licensing agreement disputes frequently involve businesses alleging that a licensee has violated the terms of the agreement, typically by:

  • Acting beyond the scope of the agreement
  • Failing to pay royalties
  • Not abiding by geographic requirements
  • Fail to provide service and support required under licensing agreements
  • Failure to actively market products under licensing agreements
  • Engaging in competitive activities in violation of licensing agreements
  • Failure of Licensor to deliver functional product

Our breach of contract attorneys have successfully helped business owners obtain relief when their legal rights – whether sales guarantees or the protection of their brand – are on the line.

To learn more about your options regarding licensing disputes and violations call us today at (713) 909-7323 to arrange a consultation or contact us online.

Texas Tortious Interference: Has a Third Party Interfered With Your Business Contract?

Texas contract law recognizes a legal claim known as “tortious interference,” which allows a business owner whose contractual relationships are exploited by a third party to seek damages directly from that third party. These claims can address current as well as prospective business opportunities.

As part of our comprehensive, consultative approach, our attorneys will determine every legal claim – including possible claims for tortious interference in contracts or interference in respect to oral or informal agreements such as tortious interference of business.

Tortious Interference: Contracts vs. Business

  • Tortious interference of a contract is when a person intentionally and wrongfully disrupts a formal contract between two parties and causes one party to breach the contract.
  • Tortious interference of business is when a third party uses false claims against a business in order to drive business away from them or to cause another party to not enter into a business relationship with them.

The contract litigation attorneys at Hendershot Cowart P.C. represent business clients in Houston, surrounding counties, and across the state of Texas.

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