Breach of contract is a legal cause of action for failing to honor the terms of an agreement. When this happens, the non-breaching party may file a civil suit for breach of contract. Some contracts contain a liquidated-damages clause, which specify in advance the penalties for a breach. But this is not always the case. In such cases, courts typically examine several factors to determine an appropriate remedy. One of these factors is the loss experienced by the non-breaching party. By determining a non-breaching party’s losses, the court may then calculate the monetary damages to be awarded and any specific remedy to be ordered in the case.
Examples of Remedies for Breach of Contract
When a contract is breached, the non-breaching party may seek a number of potential remedies, including:
- Compensation for lost time;
- Compensation for expenses;
- Compensation for the loss of future time, money, and expenses;
- Reasonable attorney fees;
- Specific performance; and
- Compensation for lost money.
Specific performance, however, is rare for several reasons, including difficulty of enforcement.
If a plaintiff waits too long to file a breach of contract claim, he or she may be barred from filing suit by the statute of limitations. Every state has its own statute of limitations for filing breach-of-contract actions; these typically range from three to fifteen years. In Texas, the statute of limitations on a breach-of-contract claim is four years. These statutes exist to encourage the diligent pursuit of valid claims and to avoid evidentiary issues that arise with the passage of time, including the availability of witnesses and documentary evidence. It is good practice to file a breach-of-contract lawsuit as soon as possible after a breach.
Contract Litigation Attorneys
Ajamie LLP’s contract practice assists corporations and individuals in reviewing, negotiating, and creating effective contracts, and in bringing claims in court to enforce the terms of valid contracts and to seek remedies for their breach. The firm litigates contract disputes in domestic and foreign forums, including international arbitration. Our experienced contract attorneys have resolved controversies arising under the Uniform Commercial Code, the United Nations Convention on Contracts for the International Sale of Goods, and other laws governing United States and international commerce. Our Texas attorneys also provide cross-border representation in a variety of business litigation matters. Please contact our firm today for a consultation.