What Are the Main Types of Contract Breaches?

An immaterial or minor contract breach occurs when one party fails to fulfill part of the contract, but the overall purpose is still met. Generally, the contract is still enforceable, although the injured party may seek damages. A material breach of contract occurs when one party’s failure to meet its obligations causes significant loss or harm to the other party. It goes to the heart of the contract, making it difficult for the injured party to continue fulfilling its obligations. When a material breach occurs, the injured party may seek damages and be excused from the remainder of its obligations. 

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How Does Breach of Contract Occur?

A party to a contract may fail to perform its obligations in a variety of ways, including the following:

  • Failure to deliver: One party fails to provide goods or services agreed upon in the contract.
  • Failure to perform: A party fails to fulfill contractual obligations within the allotted time frame.
  • Partial performance: A party delivers less than what was agreed upon, only partially fulfilling its obligations.
  • Failure to pay: One party fails to make payments as required under the terms of the contract.
  • Anticipatory breach: A party communicates that it will not be able to fulfill its obligations under the contract by the due date. 

Common Breach of Contract Situations in Business

Breach of contract disputes can arise in various business settings, for example:

  • Partnership agreements: Disputes between partners over roles, responsibilities, profit sharing, and other issues can lead to breach of contract claims.
  • Vendor and supplier disputes: When a vendor or supplier fails to deliver goods or services on time, or the quality is not up to agreed-upon standards, it may constitute a breach of contract.
  • Sales agreements: Contracts for the sale of goods or services not fulfilled as agreed can lead to significant financial losses. 
  • Employment agreements: Confidentiality agreements, non-compete clauses, and other employment agreement terms may be violated, leading to legal action.
  • Lease agreements: When a commercial landlord or tenant fails to meet its obligations under a lease, it can give rise to a breach of contract dispute. 
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What Are the Remedies for Breach of Contract in Texas?

Businesses affected by breach of contract may have recourse to several remedies under Texas law, including the following:

  • Compensatory damages: These are monetary damages intended to cover the losses from the breach.
  • Specific performance: The court may order the breaching party to fulfill its obligations under the contract.
  • Restitution: The breaching party is required to return any payment or benefit received from the injured party under the contract.
  • Liquidated damages: If the contract contains a clause specifying a predetermined amount of damages in case of breach, the court may enforce it if deemed reasonable.
  • Recission: Under this remedy, the contract is canceled, and both parties are relieved of their obligations. 

Breach of Contract Attorney in San Antonio

Our board-certified breach of contract attorneys have taken over 100 jury trials to verdict. When you work with Scheuerman Law Firm, your case will receive individualized attention and tailored legal expertise. We have extensive experience and a deep commitment to client success. Contact us if your business has been affected by a breach of contract in San Antonio.

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Board Certified - Texas Board of Legal Specialization
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