It’s one of the more frustrating parts of running a business—when a deal goes south and the other side doesn’t hold up their end of the bargain. Whether it’s a vendor who bailed mid-project, a customer who skipped payment, or a partnership that unraveled with more drama than a Friday night soap opera, contract disputes happen.
And when they do, Texas law has a lot to say about how to handle them.
Here’s the good news: not every disagreement has to end in a lawsuit. But you do need to understand your rights, your options, and the smartest path forward. So let’s talk through what resolving business contract disputes in Texas really looks like—from the legal trenches.
What Counts as a Breach of Contract in Texas?
Let’s start simple. A breach of contract happens when one party doesn’t do what they promised under a valid, enforceable agreement. That could mean:
- Failing to deliver goods or services
- Missing payment deadlines
- Not meeting performance standards
- Breaking confidentiality or non-compete terms
Texas courts will look closely at the contract itself—how clear it is, whether it was properly signed, and whether both sides had a “meeting of the minds” when they entered the deal. If the contract is vague or incomplete, things get trickier.
Side note: even a handshake agreement or an email chain can sometimes count as a binding contract in Texas. We’ve seen more than one business get burned thinking, “Well, we never signed anything formal.”
Step 1: Review the Contract—and Your Own Conduct
The first move in resolving a contract dispute is taking a long, honest look at the agreement. What were the actual terms? Are they enforceable? And—just as importantly—did you meet all your obligations?
Sometimes clients come in ready to sue, only to find they may have missed a small requirement themselves, which weakens their position. Don’t panic—just be thorough. This is where having a commercial lawyer who knows Texas contract dispute resolution law is worth their weight in brisket.
Step 2: Send a Demand Letter
Before filing anything with the court, we usually start with a demand letter. It’s a formal message that says, “Here’s how you breached the contract, here’s what we want, and here’s what happens if we don’t settle.”
A solid demand letter can be surprisingly effective—especially when it’s coming from a law firm instead of your Gmail account. It shows you mean business and gives the other party a chance to resolve things privately.
We’ve seen many disputes settle at this stage—quietly, quickly, and without dragging everyone through court.
Step 3: Explore Negotiation or Mediation
If the demand letter doesn’t do the trick, the next step might be negotiation or mediation—a voluntary process where both sides sit down with a neutral third party to hash it out. Texas courts often encourage this before a case goes to trial.
Mediation is usually faster and cheaper than litigation, and it keeps things confidential. For businesses trying to preserve a relationship—or just avoid bad press—it can be a lifesaver.
We help clients prepare strong positions for mediation, backed by contracts, emails, timelines, and whatever else supports their side. Sometimes just walking in with your ducks in a row makes the other side rethink their stance.
Step 4: File a Lawsuit (When Necessary)
If the other party won’t budge—or the breach has caused significant harm—litigation may be necessary. Texas law allows for a range of remedies in contract cases, including:
- Damages: Reimbursement for actual losses
- Specific performance: Forcing the breaching party to fulfill their promise
- Cancellation and restitution: Ending the contract and putting both parties back where they started
If your contract includes an attorney’s fees clause (and it should!), you may also recover legal costs if you win.
We treat litigation as a last resort, but we don’t shy away from it. When it’s time to take the gloves off, we’re ready.
Step 5: Prevent Future Disputes
Once a dispute is resolved, it’s a golden opportunity to look ahead. How did this happen? What language in the contract failed to protect you?
We often work with clients post-dispute to tighten up their future agreements—clearer payment terms, better dispute resolution clauses, stricter deadlines, and built-in remedies for non-performance. That’s not just lawyering—it’s long-term strategy.
A Final Word from the Trenches
At The Greg Hall Law Firm, we’ve seen how quickly a small disagreement can spiral if it’s not handled carefully. We also know how empowering it feels when a business owner stands up and says, “No, this isn’t right—and I’m going to fix it.”
Texas business owners are tough, resourceful, and proud. When you’ve done everything right and still get burned, we’re here to help you push back—with smart, strategic legal action that puts your interests first.
Got a contract that’s gone off the rails? Let’s talk. Visit www.greghalllaw.com and schedule a time to walk through the details. We’ll look at your options, weigh the risk, and chart the path to resolution—together.