Somebody did not do what they said they would do, and now it is costing you money. A San Angelo contract disputes lawyer can tell you within one meeting whether you have a claim worth pursuing or a problem better solved with a letter.
Templeton Law Firm represents West Texas businesses and individuals on both sides of broken agreements: vendor contracts, construction and service agreements, oilfield service deals, commercial leases, purchase agreements and non-compete terms. Scott Templeton has litigated commercial matters in this region since 1998.
Call (325) 482-9120 or contact us online to schedule a consultation about your dispute.
When is a broken promise actually a breach of contract?
Texas requires four things: a valid contract, your own performance or a valid excuse for not performing, the other side's failure to perform, and damages caused by that failure. Miss any one of those and the claim does not stand up.
Most cases turn on the third and fourth elements. The other side usually admits the agreement existed and argues either that they performed adequately or that your losses came from something else.
Is this a material breach or a minor one?
That single question decides whether you can stop performing. A material breach defeats the core purpose of the agreement and lets you walk. A minor breach entitles you to damages but still requires you to hold up your end.
| Material breach | Minor breach | |
| What happened | The core benefit of the bargain was lost | Performance was late, incomplete or imperfect |
| Can you stop performing? | Generally yes | No, you must continue |
| What you recover | Full damages, possible termination | The cost to fix the shortfall |
| Common example | Contractor abandons the job midway | Contractor finishes two weeks late |
Getting this wrong is expensive. Businesses that stop paying over a minor breach often find themselves as the defendant instead of the plaintiff.
Does a handshake deal hold up in Texas?
Often, yes. Texas enforces oral agreements in many commercial situations, but the statute of frauds requires certain contracts to be in writing and signed to be enforceable.
Written form is required for real estate transfers, agreements that cannot be performed within one year, promises to pay someone else's debt, and certain sales of goods above a threshold amount. If your deal falls in one of those categories and lives only in a phone call, the claim gets much harder.
Emails, texts, invoices and signed change orders frequently satisfy the writing requirement even when no formal contract exists. Bring everything.
What you can actually recover in a Texas breach of contract case
Damages are meant to put you where performance would have left you, not to punish the other side. Texas generally does not allow punitive damages for a straight breach of contract.
Recovery usually comes in some combination of direct damages for the lost value of the bargain, consequential damages for foreseeable knock-on losses, a liquidated damages figure if your contract set one, specific performance when money is not an adequate fix, and rescission when the deal should be unwound.
Can I make the other side pay my attorney's fees?
In many contract cases, yes, and that changes the math on whether suing is worth it. Texas Civil Practice and Remedies Code Chapter 38 allows a prevailing party to recover reasonable attorney's fees on a valid breach of contract claim, and since September 2021 that recovery reaches limited liability companies, partnerships and most other organizations, not just individuals and corporations.
Chapter 38 also requires presentment. You have to present the claim to the other side and give them a reasonable window to pay before fees start accruing. Skipping that step can cost you the fee award even if you win the case.
How long do I have to sue for breach of contract in Texas?
Four years from the date of the breach, under the Texas Civil Practice and Remedies Code. Contracts for the sale of goods fall under the Texas Uniform Commercial Code, which also carries a four-year deadline running from when the breach occurred.
The trap is identifying the breach date. In an installment contract or an ongoing service agreement, the clock may have started on the first missed obligation rather than the last one.
The four stages of a Texas contract case
Most disputes move through four stages, and most of them end before the fourth.
Demand. A documented demand letter that satisfies presentment, states the amount owed and sets a deadline. A meaningful number of disputes settle right here.
Filing and discovery. Contract cases from San Angelo are heard in the Tom Green County district courts, the 51st, 119th, 340th and 391st, unless your agreement contains an arbitration clause or a venue clause pointing somewhere else. Read that clause before you do anything.
Mediation. Texas courts routinely order it, and commercial disputes settle there more often than not.
Trial. Prepared for from the first day, because a case built for trial negotiates from a stronger position.
Call 325-482-9120 to find out which stage your dispute belongs in.
Why bring a West Texas contract case to this office
Because it is handled by the attorney you hire. Scott Templeton is a San Angelo native, earned his B.A. in English and History at Angelo State University and his Juris Doctor from St. Mary's University School of Law in 1998, and has spent more than 25 years untangling contracts, obligations and the consequences that follow when they fall apart.
These cases frequently sit alongside the business and commercial disputes we handle in San Angelo and overlap with disputes between business partners when the people on both sides of the agreement are co-owners.
Frequently Asked Questions
The other side keeps promising to pay. Does that reset my deadline?
Sometimes. A clear written acknowledgment of the debt can restart the limitations clock in certain circumstances, but a vague verbal "we're working on it" usually will not. Do not rely on a promise to preserve your claim.
My contract has an arbitration clause. Am I stuck with it?
Usually. Texas courts enforce arbitration agreements in commercial contracts in most circumstances. Challenges are possible where the clause was procured by fraud or is unconscionable, but the presumption runs toward enforcement, so the clause should shape your strategy rather than surprise you later.
What if the company that owes me money files bankruptcy?
Bankruptcy stops collection immediately and moves your claim into that proceeding. Acting quickly matters, because early claim filing and any security interest you hold determine where you sit in line.
Can I sue if the contract was never signed?
Possibly. Texas recognizes agreements formed by conduct and course of dealing, and it recognizes quantum meruit claims for the value of work you actually performed. An unsigned contract weakens the case but does not always end it. Invoices, emails, delivery records and payment history often carry the proof a signature would have.
Should I keep performing while we fight about it?
That depends entirely on whether the breach was material. Stopping work on a minor breach flips you into the defendant's chair. Ask before you stop.
Get a read on your contract
A contract dispute rarely gets cheaper with time. Evidence gets thinner, the four-year deadline gets closer, and the other side's ability to pay can disappear.
Templeton Law Firm is at 905 S. Abe Street in San Angelo, open Monday through Friday, 9 AM to 5 PM. Call 325-482-9120 or reach the firm through the contact page to have your agreement reviewed.