How Can Small Businesses in Texas Protect Themselves Against Breach of Contract Claims?

A breach of contract claim can devastate a small business in Texas, but there are ways to protect yourself. The most important thing is to contact a business lawyer in San Marcos, TX as quickly as possible.

How Can Small Businesses in Texas Protect Themselves Against Breach of Contract Claims?

Contacting a Business Lawyer in San Marcos, TX

While it might seem most cost-effective to take care of things yourself, that’s rarely wise. In the end, the risks are too high, and trying to address a breach of contract claim without legal advice and assistance could be the death of your company. Our knowledge of Texas law and our experience allow us to develop a strategy that’s unique to each client to offer a strong defense on your behalf.

Showing There Was No Valid Contract

For a breach of contract claim to go forward, the party bringing the claim has to prove there was a valid contract. A valid contract under Texas law must have an offer by one party, acceptance by the other party, and something of value has to be exchanged by mutual agreement. If we can show that any of these elements are missing from your contract, then the contract is invalid and there is no claim.

Showing the Other Party Started the Breach

You may be able to show that the other party violated the contract before you did. If that’s the case, then you should not be expected to follow through with your obligations.

Showing the Contract Wasn’t Clear

Another possible defense in these situations is to show that the terms of the contract can be interpreted in more than one way, so there is no agreement about what was required. If you are the one who drafted the contract, then this is probably not the defense you want to use. If the other party drafted it, this is a great defense.

Showing You Have Mostly Performed What’s Required

Another defense that works well is to show that you have either already done what was required or have come so close to it that the failure is very minor. A small or extremely technical violation of a contract isn’t enough for a breach of contract claim.

Showing You Had a Legal Reason to Breach

In some cases, your best defense is not to argue that you did not breach the contract but to show that there’s a valid reason you did, and thus you should not be held liable for breach of contract. For example, if something completely out of your control, such as a natural disaster, prevented you from acting, then you could not have performed what you agreed to do. If the other party signed a waiver saying that they accepted what you provided, even if it wasn’t exactly what was required in the contract, this is also a valid affirmative defense.

For help with your defense, contact the Artie Pennington Law Offices in Kyle, TX for help in Kyle, San Marcos, Austin, and beyond.

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