What Are Business Contract Disputes?
Internal business contracts set the rules for ownership, management, profit sharing and exit. When those rules are broken, ignored or interpreted differently by co-owners, the dispute can threaten the company's operations and value.
Agreements That Commonly Lead to Disputes
- Partnership agreements
- LLC company agreements and operating agreements
- Shareholder and voting agreements
- Buy-sell and buyout agreements
- Founder and equity agreements
- Executive employment and compensation agreements
- Non-compete, non-solicitation and confidentiality agreements
- Management services and related-party agreements
How to Prove Breach of Contract in Texas
To win a breach of contract claim in Texas, you generally must prove:
- A valid, enforceable contract existed.
- You performed or tendered performance.
- The other party breached the contract.
- You suffered damages as a result.
Remedies for Business Contract Breaches
- Actual and consequential damages, including lost profits
- Specific performance, such as enforcing a buyout
- Injunctions to stop ongoing violations
- Declaratory judgment on contract meaning
- Attorney's fees, which Texas law allows on many contract claims, including claims against LLCs and other entities
Deadlines That Matter
Most breach of contract claims in Texas must be filed within four years. Learn more about the Texas statute of limitations for breach of contract. Many business agreements also include notice, cure, mediation or arbitration requirements that must be followed first.
When to Call a Business Contract Dispute Lawyer
Contact a business contract attorney as soon as a co-owner refuses to honor a buyout, ignores a voting or transfer restriction, withholds distributions required by the agreement or claims the agreement no longer applies. Early review helps you comply with notice and cure provisions, avoid waiving rights and preserve evidence of performance and breach. In many cases, a well-crafted demand letter backed by a clear litigation plan resolves the dispute without filing suit.
Business Contract Attorneys in Dallas and Across Texas
We represent owners and companies in Dallas, Fort Worth, Plano, Frisco, Houston, Austin and San Antonio. Schedule a free consultation or call 214-935-1628.
Business Contract Disputes: Frequently Asked Questions
Can I recover attorney's fees in a Texas contract dispute?
Often yes. Texas law allows recovery of reasonable attorney's fees on many contract claims, and many agreements include their own fee-shifting provisions.
What if our agreement requires arbitration?
Texas courts generally enforce arbitration clauses. We handle both arbitration and court litigation and can challenge clauses that do not apply.
Can a poorly drafted agreement still be enforced?
Often yes. Courts interpret ambiguous terms using the parties' intent, surrounding circumstances and course of dealing.
What is the difference between this page and commercial contract disputes?
This page covers agreements between owners and within the company. Our commercial and contract disputes practice covers vendors, customers, suppliers and other outside parties.
Can I sue for breach of an oral business agreement?
Yes, in many cases. Oral contracts can be enforceable in Texas, though the statute of frauds requires certain agreements to be in writing.