In a Texas breach of contract case, you can usually recover the money needed to put you where you would have been had the contract been performed, plus interest, and often your attorney’s fees. Punitive damages are generally not available for a breach alone. In some cases a court will order the other side to perform instead of paying money.
What do I have to prove?
Four things: a valid contract existed; you performed or were ready to perform your side; the other party breached; and the breach caused you damages. Most fights are about the second and fourth elements — whether you held up your end, and how much the breach actually cost you.
What damages are available?
| Type | What it covers | Example |
|---|---|---|
| Benefit of the bargain | The value you were promised minus what you received | A supplier delivers half the order; you pay more elsewhere for the rest |
| Consequential damages | Foreseeable losses flowing from the breach | Lost profits on contracts you couldn’t fill, if provable with reasonable certainty |
| Reliance damages | Money spent preparing to perform | Build-out costs for a lease the landlord backed out of |
| Prejudgment and post-judgment interest | Time value of the money owed | Running from the claim’s accrual or filing |
Two limits matter. Lost profits must be proven with reasonable certainty, with real numbers rather than projections. And you must take reasonable steps to mitigate your losses.
Can I recover my attorney’s fees?
Often, yes. Chapter 38 of the Texas Civil Practice and Remedies Code lets a prevailing party recover reasonable fees on a contract claim. Since a 2021 amendment, that includes claims against LLCs and partnerships, not just individuals and corporations. You must present the claim to the other side and wait 30 days before fees are recoverable. Many contracts also contain their own prevailing-party fee clause.
Can the court make them perform instead?
Sometimes. Specific performance is available when money can’t fix the problem, most often in real estate deals or sales of unique assets. Courts can also rescind a contract induced by fraud, or reform one that doesn’t reflect what both sides actually agreed.
What can limit my recovery?
- Contract terms that cap damages, exclude consequential damages, or require arbitration.
- The four-year statute of limitations for most Texas contract claims.
- Your own breach. If you materially breached first, the other side may be excused.
- Oral agreements that fall under the Statute of Frauds, such as many real estate deals and agreements that can’t be performed within one year.
What should I do when a contract is breached?
Keep performing if you can, unless your lawyer advises otherwise. Stopping can make you the breaching party. Gather the contract, amendments, emails and invoices. Send a written demand that presents the claim. And don’t miss the limitations period.
From our case files
- Lease guaranty, plus attorney’s fees. We won a breach of contract case on a lease guaranty in the mid-to-high six figures and also recovered our client’s attorney’s fees, for a total in the upper six figures (2024).
- Multi-million-dollar DTPA win. We won a Deceptive Trade Practices Act business lawsuit in a multi-million-dollar case (2024).
- Full refund on a nonconforming vehicle. A custom pickup was sold without the promised title and built for the EU market, not legal to drive in the U.S. We obtained a full $150,000 refund (2024).
Client names are withheld for confidentiality. Every case turns on its own facts, and past results do not guarantee a similar outcome. See more representative results.
The Burk Law Firm has handled Texas contract disputes since 1992. Call (512) 306-9828.
Related: How Does a Business Lawsuit Work in Texas? · How Do You Prove Business Fraud in Texas? · Breach of Contract Lawyers in Austin, TX · Can a Business Sue Under the Texas Deceptive Trade Practices Act?
This article is general information, not legal advice. Reading it does not create an attorney-client relationship.