What Is A Contractual Agreement?
A contract is an agreement between two or more parties that lays out the terms of their relationship. Contractual disputes can arise in many situations — some simple, some complex — such as:
Does the contract need to be in writing?
Contracts can be either verbal or in writing. However, to be enforceable in a court of law within the state of Texas, some contracts must be in writing. These include the following:
What about dispute resolution clauses?
Many contracts have dispute resolution clauses. These clauses specify how any disagreements between the parties about the subject matter of the contract will be resolved. They usually require that the parties participate in mediation or arbitration before resorting to the courts. Dispute resolution clauses often set forth the geographic location at which the disputes will be resolved and can include a governing law clause that determines which state’s substantive law will control the outcome of the dispute.
What kind of damages can be awarded in a contractual dispute?
The types of damages that may be awarded to the prevailing party in a dispute, depending upon the facts of the particular case, include:
Direct damages - Direct or general damages are those damages that naturally flow from a breach of the contract and are presumed to be a foreseeable consequence of a breach of contract. Generally, direct damages are measured in one of two ways: (1) the out-of-pocket loss; or (2) the benefit-of-the-bargain lost.
Consequential or incidental damages - Consequential or incidental damages cover losses that follow naturally but not necessarily from the breach and are therefore recoverable only when the breaching party had notice or could have foreseen that the non-breaching party would suffer. These damages may include losses like lost profits.
Liquidated damages - These damages are specified in some contracts, but are scrutinized by courts and must bear a relation to what the actual, foreseeable damages would be.
Attorney fees and costs - Section 38 of the Texas Civil Practice and Remedies Code provides for recovery of reasonable attorney's fees in most contract cases.
If you are facing a contract dispute, you need competent legal counsel to make sure you understand your rights and obligations under the particular contract that is in dispute. If you find yourself facing a contract dispute, give us a call here at Stockard, Johnston, Brown & Netardus, P.C. Our Amarillo lawyers have many years of experience in handling contract disputes. Contact us today to speak with one of our experienced attorneys.
- When the terms and conditions of the contract are breached by one or more of the parties
- When there is disagreement over the interpretation of the terms of the contract
- When the contract does not address a particular situation
Does the contract need to be in writing?
Contracts can be either verbal or in writing. However, to be enforceable in a court of law within the state of Texas, some contracts must be in writing. These include the following:
- Contracts for the sale or transfer of an interest in land
- A contract that cannot be performed within one year of the making
- A contract for the sale of goods valued at $500 or more
- A contract of an executor or administrator to answer for a decedent's debt
- A contract to guarantee the debt or duty of another, and
- A contract made in consideration of marriage (a prenuptial agreement, for example)
What about dispute resolution clauses?
Many contracts have dispute resolution clauses. These clauses specify how any disagreements between the parties about the subject matter of the contract will be resolved. They usually require that the parties participate in mediation or arbitration before resorting to the courts. Dispute resolution clauses often set forth the geographic location at which the disputes will be resolved and can include a governing law clause that determines which state’s substantive law will control the outcome of the dispute.
What kind of damages can be awarded in a contractual dispute?
The types of damages that may be awarded to the prevailing party in a dispute, depending upon the facts of the particular case, include:
Direct damages - Direct or general damages are those damages that naturally flow from a breach of the contract and are presumed to be a foreseeable consequence of a breach of contract. Generally, direct damages are measured in one of two ways: (1) the out-of-pocket loss; or (2) the benefit-of-the-bargain lost.
Consequential or incidental damages - Consequential or incidental damages cover losses that follow naturally but not necessarily from the breach and are therefore recoverable only when the breaching party had notice or could have foreseen that the non-breaching party would suffer. These damages may include losses like lost profits.
Liquidated damages - These damages are specified in some contracts, but are scrutinized by courts and must bear a relation to what the actual, foreseeable damages would be.
Attorney fees and costs - Section 38 of the Texas Civil Practice and Remedies Code provides for recovery of reasonable attorney's fees in most contract cases.
If you are facing a contract dispute, you need competent legal counsel to make sure you understand your rights and obligations under the particular contract that is in dispute. If you find yourself facing a contract dispute, give us a call here at Stockard, Johnston, Brown & Netardus, P.C. Our Amarillo lawyers have many years of experience in handling contract disputes. Contact us today to speak with one of our experienced attorneys.