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The different ways to resolve a contract dispute

There is a chance that a party won't be able or willing to live up to the terms of a contract it agreed to. If an entity fails to live up to its end of an agreement, it is said to have breached the contract. After a breach of a contract that is governed by Texas law, the breached party may demand that the other side abide by its obligations.

A court could also step in and order the offending party to fulfill its contractual duties. However, it may also award financial compensation or other forms of relief if this does not happen. Compensatory damages seek to make the the victim of a contract breach whole while liquidated damages are typically defined in the contract itself. Punitive damages could be awarded if a party took actions that were especially egregious.

In some cases, the party that didn't breach a contract could simply cancel it and seek restitution. Any payments made by the breaching party to the victim would aim to put it as close to the same financial position it was in before the agreement was reached. Cancelling the contract would mean that neither party has any obligation to the other either today or in the future.

After a contract breach, it may be possible for the aggrieved party to take the perpetrator of the breach to court. An attorney may be able to represent a company or individual business owner in a corporate dispute. In some cases, it may be possible to resolve a dispute without the need to go to court.

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