Defining Breach of Contract in Texas

Mar 16, 2023
Breach of Contract

Welcome to KLA Signing Service, your trusted partner in the business and consumer services, specifically focusing on the real estate industry in Texas. In this article, we will provide you with a detailed understanding of what constitutes a breach of contract in Texas and its implications.

Understanding Contract Law in Texas

Contract law in Texas governs the enforceability of agreements between parties involved in various business transactions. A contract is a legally binding agreement that outlines the rights and obligations of each party. When both parties fulfill their obligations as stated in the contract, it is considered a successful contractual relationship. However, when one party fails to meet their obligations, it results in a breach of contract.

Defining Breach of Contract

Breach of contract refers to the failure of one party to perform their agreed-upon obligations without a valid legal excuse. It can occur in various forms, including:

  • Non-payment or delayed payment
  • Partial performance
  • Failing to deliver goods or services as specified
  • Failure to meet deadlines
  • Violating terms and conditions

It's important to note that a breach of contract can be either material or minor. A material breach is a significant violation that directly impacts the purpose of the contract, while a minor breach is a non-essential violation that does not hinder the overall intent of the agreement.

Remedies for Breach of Contract

When a breach of contract occurs, the non-breaching party is entitled to seek remedies to compensate for the damages suffered. In Texas, common remedies for breach of contract include:

1. Damages

The non-breaching party may seek monetary compensation for the losses suffered as a direct result of the breach. The goal is to place the injured party in the position they would have been if the breach had not occurred.

2. Specific Performance

In certain cases, the court may order the breaching party to perform their obligations as stated in the contract. This remedy is commonly sought when unique goods or services are involved, making monetary compensation inadequate to remedy the situation.

3. Rescission

In situations where the breach is significant and renders the contract unenforceable, the non-breaching party may seek rescission. Rescission essentially cancels the contract and restores the parties to their pre-contract positions.

Statute of Limitations

It's important to be aware of the statute of limitations when pursuing a breach of contract claim. In Texas, the general statute of limitations for breach of contract is four years from the date of the breach. However, it's advisable to consult with a legal professional to ensure compliance with specific time limitations based on your unique circumstances.


In summary, understanding the concept of breach of contract and its implications is crucial for businesses and individuals engaging in contractual agreements in Texas. KLA Signing Service is dedicated to providing valuable insights and expertise in the real estate industry, ensuring that our clients have a comprehensive understanding of their contractual rights and obligations.

For more information and assistance regarding breach of contract or any other real estate-related matters, feel free to contact KLA Signing Service today. We are here to assist you and provide the highest level of professional service in Texas.