Having a contract go out from under you is something that no business owner wants. When someone else breaks the terms of the deal, you want to collect whatever money is within your right. Under Texas State Law, once you can prove a valid contract exists, you may move forward with remedies for the breach.
In general, there are two general types of remedies available for the victim of a contract breach and the financial award or damages to compensate. Understanding the available remedies of a broken contract may aid in your efforts to get what is coming to you.
Consequential
Depending on the type of contract you had, your business may have suffered a loss because someone did not deliver a necessary service or good. Absent this, your company was unable to function properly, and you lost money. Damages for this type of break fall under the consequential category because you suffered a loss as a consequence of the breach. Your loss was an indirect consequence of the other party’s failure to deliver the goods and services contemplated in the deal.
Expectation
Contracts sometimes contain many moving parts, and one when of those parts is not done, every step that was to occur after may stop. When you signed the agreement, you expected the other party to perform as set forth. However, if this does not happen, and it voids the remaining items of the contract, your expectation of the delivery of the goods or services was not satisfied. As such, you may recover damages for your financial losses from this point of the breach forward.
The legal ramifications of a breach of contract are typically stated somewhere within it. Knowing you have options for recovery may help you proceed with getting back what you may have lost.