Breach of Contract

Many business litigation cases involve a breach of contract. One person or business promises to do something for another and they don’t. It’s not unusual for large deals in Texas to be done on a handshake. That’s fine. But when the other party fails to perform under the contract, it can cost you and your business money. Contract claims are often complex, and can involve issues of both fact and law.

A breach of contract claim may not be as obvious as it seems. Persons who are not parties to a contract, through threats, promises, or influence, can be held responsible for a breach of a contract involving other parties. See Tortious Interference.

There are two general kinds of damages that may be awarded upon prevailing on a breach of contract claim. Compensatory damages (actual damages) address the loss that the non-breaching party incurred as a result of the breach by the other party. The award is intended to make up for the loss caused by the breach. Compensatory damages may include general damages, which cover the loss directly incurred from the breach. Compensatory damages may also include special damages (consequential damages) that cover a loss resulting from the breach because of special circumstances that are not ordinarily predictable, if the breaching party knew about the special circumstances at the time the parties formed the contract. In addition to compensatory damages, punitive damages (exemplary damages) may also be awarded to punish or make an example of the wrongdoer, if that party acted willfully, maliciously, or fraudulently. One of the purposes of punitive damages is to deter others from acting in a similar manner. Punitive damages, if they are awarded, are awarded in addition to compensatory damages. However, punitive damages are rarely awarded in breach of contract cases.

The Katz Firm will dedicate the time and attention necessary to effectively and efficiently pursue your breach of contract claim. Contact the Katz Firm for a free no-obligation case evaluation.

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