What Happens When a Contractor Breaches a Contract?
Contracts are the backbone of any professional relationship. They define obligations and expectations for both parties. But not all contracts go as planned. When a contractor fails to uphold their end of the deal, whether by delivering subpar work, missing deadlines, or abandoning the project entirely, it constitutes a breach of contract. This can result in financial losses, project delays, and unnecessary stress for individuals and businesses.
If you’re involved in a breach of contract, an experienced breach of contract attorney can help protect your rights and seek an effective resolution. The Parzivand Law Firm, PLLC, provides tailored legal support for individuals and businesses throughout Texas, including Stafford, Sugar Land, and Fort Bend County.
With extensive knowledge of contract law and a personalized approach, the firm helps clients hold contractors accountable and recover losses from contract breaches.
What is a Breach of Contract?
A breach of contract occurs when one party fails to perform the obligations agreed upon in the contract. For contractors, this can include:
Non-performance: Failing to complete the project altogether.
Substandard work: Delivering work that does not meet the specifications in the contract.
Missed deadlines: Delays in completing the project without valid reasons.
Unauthorized changes: Making decisions or changes to the project that were not approved or agreed upon.
When a breach occurs, the other party is impacted financially and emotionally. Fortunately, the law provides recourse for holding contractors accountable for their failures.
Types of Breaches
In Texas, contract breaches typically fall under one of the four following categories:
Material breach: A material breach goes against the foundation of the agreement. For example, if a contractor is hired to remodel a kitchen but leaves the job half-done, this could constitute a material breach.
Minor breach: A minor breach is less significant than a material breach. For instance, if a contractor completes the work but fails to clean up as stipulated in the contract, this might constitute a minor breach.
Anticipatory breach: This occurs when one party communicates (either verbally or through action) that they will not fulfill their contractual obligations.
Actual breach: This is when a party explicitly fails to perform their duties by the agreed-upon deadline or delivers poor results.
Breach of Contract Laws in Texas
Texas has clear guidelines for handling breach-of-contract cases. Some critical aspects you should know about Texas contract law include:
Statute of Limitations
Under Texas law, the statute of limitations for most breach-of-contract claims is four years. This means you must file a lawsuit within four years of the breach, or you may lose your right to legal recourse. However, certain contracts may shorten this period to two years, so it’s important to act promptly.
Legal Remedies for Breach
Texas has several remedies for breaches of contract, including:
Compensatory damages – To cover financial losses caused by the breach.
Specific performance – Requiring the contractor to fulfill their obligations as specified in the contract.
Rescission – Terminating the contract and restoring the non-breaching party to their original position before the agreement.
The Importance of Written Contracts
While verbal agreements can be legally binding in Texas, enforcing them can be challenging without documentation. This is why written contracts are highly encouraged when hiring contractors. They provide clear evidence of terms, responsibilities, and expectations.
Duty to Mitigate Damages
Texas law requires the non-breaching party to minimize its losses. For example, if the contractor abandons the project, the non-breaching party must make reasonable efforts to find alternative solutions, such as hiring another contractor.
Taking Action When a Contractor Breaches a Contract
If you're dealing with a contractor who hasn’t fulfilled their obligations, it's important to take swift action to rectify the situation. The primary steps you should follow in this case include:
Review the contract: Thoroughly review the contract to understand its terms and conditions. Identify the specific obligations the contractor has failed to meet.
Document everything: Keep detailed records of the project, including timelines, communication with the contractor, and evidence of the breach, such as incomplete work or poor craftsmanship. Photographs, emails, and written correspondence can serve as valuable evidence.
Communicate with the contractor: Attempt to resolve the issue directly with the contractor. Sometimes, misunderstandings or miscommunications can lead to delays or errors, which may be corrected without legal intervention.
Send a demand letter: If discussions fail, a formal demand letter can specify the breach and request resolution. This demonstrates your intention to resolve the issue amicably before escalating matters.
Consult a breach of contract attorney: If the contractor refuses to cooperate or disputes the breach, it’s time to seek legal counsel. An attorney can evaluate your case, explain your options, and help you pursue compensation or other remedies.
Breach of Contract Attorney Serving Stafford, Texas
The Parzivand Law Firm, PLLC believes in building meaningful connections with its clients and easing the stress of legal challenges. If you’ve been involved in a breach of contract issue, contact The Parzivand Law Firm to explore your options. Located in Stafford and Houston, Texas, the firm serves clients throughout Sugar Land, and Fort Bend County.