Has someone kept you from operating
your business properly because they
did not hold up their end of a deal?
Your problem is not uncommon.
Most small businesses suffer profit,
wage, or product loss at some point of
operation because of a separate
party’s negligence.
Common occurrences of broken
contracts are:
 Someone who failed to deliver,
or was late delivering crucial
material to your business.
 A person contracted to perform
a task that they failed to do
correctly, if at all.
 A separate party failed to
compensate you for goods
and/or services.
Fight for what you’ve lost.
This pamphlet was prepared by the
associates of the Law Offices of
T.Bowen to help small business
owners in assessing their legal rights.
While this pamphlet should not be
used as a legal defense we do offer
our services to private parties seeking
legal compensation for violations of
contract. For further inquiries, contact
one of our lawyers that can help you
get the compensation you deserve.
For more pamphlets concerning your rights,
please visit us at:
www.tbowenlawoffices.com
Violation
of Contracts
Who’s
taking
advantage
of YOU?
Know YOUR rights.
A
Don’t feel alone. We’re here to help
you assess your situation so you can
make the right decisions in fighting
for your rights.
Law Offices of T.Bowen are located at 1234
75 North Central Hwy Dallas, Tx. 75074
pamphlet for the small business owner.
Know your rights.
E-Mail: contracts@t.bowenlawoffices.com
Phone: 972-654-7852
Fax: 972-815-6805
Presented by:
Law Offices of T.Bowen
Contract Violations:
How to claim
consequential damages
What is consideration?
The price paid for another’s promise; it
must be sufficient, meaning it must hold
some value.
The purpose of this pamphlet is to aid
small business owners in assessing options
after a separate party has violated a
contract. This pamphlet only serves as a
broad discussion of the topic and should
not be used for any legal defense.
For example, Andrew pays Jenna an
agreed upon amount for her promise to
deliver a wedding cake at a specific date
and time. His payment for her promise to
deliver the cake was made as a
consideration.
What is a contract?
How do I know if someone has
breached a contract?
An agreement of specific actions, benefits,
and / or compensation between legally
competent people. Note that not all
contracts must be in written form to be
enforceable.
By law, the only contracts that would
apply to a small business owner that
MUST be in written form are:
 Contracts that cannot be completed
within one year,
 Sale of goods or services exceeding
$500, if payment is not received in
full, and
 Surety (the act of someone
becoming the guarantor for another
party’s debt).
While it is legal to hold an oral contract
with another party, it is advised to have all
business contracts in writing.
If someone has failed to deliver agreed
upon terms, whether it be an act, material,
or payment by a designated time, or agreed
upon manner after both parties have
consented to the contract, they have
breached contract.
What if someone has violated the
contract?
Cause of action occurs when sufficient
facts are gathered to validate a person’s
right to file a lawsuit against another party
for failing to uphold their portion of the
contract. In other words, when someone
has violated a contract, you are legally able
to file suit against them to gain
compensation for failure to deliver.
What kind of compensation am I
entitled to?
The plaintiff, or person who filed the
lawsuit, is entitled to sue for damages - the
financial equivalent to injury sustained by
the plaintiff. Injury may not be physical,
but monetary or mental.
Consequential damages could be awarded
to the plaintiff for breach of contract.
What are consequential damages?
This is the compensation sought by the
plaintiff. They are calculated through
interpretation of the contract by a judge.
They include compensation for loss of
product and profit, rational foreseeable
damages, and/or damages known to both
parties at the time of signing the contract.
Rational foreseeable damages include
injury acquired by the plaintiff through
naturally arising circumstance. For
instance, the loss of wages if someone
breaches contract, the business is
inoperable, but employees must still be
paid.
Here’s an example of
consequential damages:
rights
to
Susan, the owner of a bakery, hires Joe to
pick up and deliver an industrial mixer to a
mechanic, and promptly return by an
agreed upon time. Both parties are aware
that Susan’s bakery cannot operate without
this mixer. Joe fails to return the mixer
until 5 days after the agreed upon time.
Susan now holds a legal right to file suit
against Joe. She would be entitled to
compensation for loss of profits, and
wages.