Breach of contract is a cause of action or claim in civil litigation (lawsuits) that provides the legal basis for a person or entity to recover its damages/losses when another person or entity breaches an enforceable written or verbal agreement (contract) by breaking one or more promises in the agreement.
In Texas, a breach of contract occurs when one party fails to fulfill their obligations under a binding agreement, whether the contract is written or verbal. To pursue a breach of contract claim, the aggrieved party must demonstrate that a valid contract existed, the plaintiff performed or was excused from performing their contractual obligations, the defendant breached the contract, and the plaintiff suffered damages as a result of the breach. Texas follows the 'four corners rule' for written contracts, meaning that the interpretation of the contract is typically based on the text within the four corners of the document without considering external evidence. If a breach is proven, the non-breaching party may be entitled to various remedies such as compensatory damages, consequential damages, specific performance, or rescission of the contract. The statute of limitations for breach of contract in Texas is generally four years from the date the breach occurred. However, parties can contractually agree to a shorter period for filing claims.
