Contract law is an area of law that makes and enforces contracts as legally binding agreements. Contracts serve as the foundation of commercial transactions, establishing rights and obligations between two or more parties. In Texas, contract law statutes provide a robust framework for enforcing agreements and resolving disputes to ensure fair and efficient business dealings. Read on for more information regarding some of the key aspects of Texas contract law statutes and the fundamental principles and provisions that govern contractual relationships in the Lone Star State.
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Formation of Contracts
Texas contract law follows the basic principles of contract formation, which include offer, acceptance, and consideration. According to the Texas Business and Commerce Code, an offer must be “sufficiently definite” and acceptance must be “unambiguous” to create a legally binding agreement. Additionally, the presence of consideration, which refers to the exchange of something of value between the parties, is essential as it is the main element of a contract.
Statute of Frauds
The Statute of Frauds is an important aspect of contract law in Texas. It is a legal doctrine that requires certain types of contracts to be in writing in order to be enforceable. Some examples of contracts that fall under the Texas Statute of Frauds include those involving the sale or transfer of land, agreements that cannot be performed within one year, contracts for the sale of goods exceeding $500, etc.
Express and Implied Contract Terms
Texas contract law recognizes two kinds of contract terms: express terms and implied terms. Express terms are explicitly stated in writing or verbally in the contract and form the basis of the agreement between the parties. Implied terms differ from express terms in that they are not explicitly stated but are implicit–they are not directly expressed by law or inferred from the nature of the transaction or the conduct of the parties. Understanding the distinction between express and implied terms is crucial when it comes to interpreting and enforcing legal contracts in the State of Texas.
Breach of Contract
Under Texas law, a breach of contract occurs when a party fails to perform obligations under a contract. Some breaches of contract are material while others are immaterial breaches. There are legal remedies in such cases that aim to compensate the injured party for the losses suffered due to the breach. Common remedies include monetary damages, specific performance, and injunctive relief. In the case of a material breach, the non-breaching party may seek damages or even terminate the contract. And in the case of an immaterial breach, the non-breaching party may be entitled to damages, but termination is generally not an option.
Understanding Texas contract law statutes is crucial for individuals and businesses engaging in contractual relationships. Consulting with a business lawyer in Houston, Texas like attorney Brad Reeves of Reeves Law who specializes in contract law can provide further guidance and help parties protect their rights and interests under the comprehensive framework provided by Texas contract law statutes. Contact Reeves Law today.
Texas Business and Commerce Codehttps://statutes.capitol.texas.gov/Docs/SDocs/BUSINESSANDCOMMERCECODE.pdf