In Texas and elsewhere throughout the United States, a contract is a legally binding document creating rights and obligations for parties of the contract. When a party fails to uphold his or her contractual duties, a breach of contract occurs, possibly giving rise to a contract dispute. A contractual breach can take place when a party fails to perform his or her obligations in a timely manner or does not perform according to the terms of the contract or even when there is an omission of performance of the contract.
In the event of a breach of contract, the aggrieved party may seek protection under law or may try to recover monetary damages resulting from such a breach. Commonly, in order to resolve a contract dispute and to enforce contracts, the recourse sought by many people is to file a lawsuit.