A “contract” is a promise. Specifically, a legal promise between two or more people or entities that can be enforced in court, if necessary.
Generally speaking, there are some universal elements to any contract. These are:
- consideration,
- capacity,
- legality and
- mutual assent.
In the event of a breach of contract, or a breaking of the legal promise, there are several different recoveries that might be available. These are:
- general damages,
- reliance damages,
- consequential damages and
- specific performance.
The law of contract has grown dramatically and in many ways is one of the most complicated areas of the law. Fortunes have been won and lost on seemingly meaningless details. Wealthy people have lost everything because they either did not understand a contract or did not expect it to be enforced in the manner in which it was.
In Texas, the law provides for damages to be paid if someone interferes with a valid contract. In fact, Texas law permits recovery, under certain circumstances, for interference with a prospective business relationship. It is important that anyone that enters into any contract of any significance to understand to what they are agreeing.
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