Can you file a lawsuit when someone else breaks a contract?

| Jun 4, 2021 | Business Law

Contracts are formal agreements between two or more parties regarding transactions or services. Most contracts requires one company or person to do something for another party in exchange for certain compensation. Other contracts might prohibit people from taking certain actions and impose penalties if that individual violates the contract through restrictive covenants.

Whether you sign a contract with someone to provide you with materials, perform a service or protect your business’s trade secrets, you expect them to uphold their end of the bargain. Do you have the legal right to take action if they violate the contract?

The Texas civil courts frequently hear breach of contract cases

One of the main reasons that so many people use contracts to protect themselves or their companies is that a written contract is much easier for someone to enforce in court than a verbal agreement between individuals is. Contracts codify and make it clear what each party agreed to or promised the other and help ensure that those who suffer economic damages due to a breach can hold the other party accountable.

When someone fails to follow through with their contractual obligations, the other party to the contract could file a civil lawsuit. Provided that you take action within four years of learning about the breach, Texas law generally supports your right to pursue a claim against someone who does not fulfill their obligations to you.

There are many different solutions available in breach of contract cases. Learning more about what the courts could order can help you decide what steps to take next.