Enacted in 2011, the Texas Citizens Participation Act is described in Chapter 27 of the Texas Civil Practice and Remedies Code (H.B. 2973, 82nd R.S.). Designed to protect freedom of speech and other important First Amendment rights, the act has had a substantial impact on legal proceedings in Texas courts. The TCPA was created “to …
Category: Business Law
Forming a Partnership in Texas without a Written Agreement
A common misperception is that forming a partnership in Texas requires formal paperwork. However, there actually is no requirement for a written agreement. In fact, parties may even create a partnership when they do not intend to do so. When does Texas law allow a partnership to be formed? Does it need to be in …
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Can Emails Create a Contract in Texas?
Because it specifies the exact terms of agreement for conveying property, a real estate contract is arguably the most important document used in the sale of real property. It identifies in writing the terms and conditions of a real estate transaction and legally binds buyer and seller to fulfill their obligations as outlined in the …
Piercing the Corporate Veil in Texas
One of the primary benefits of creating a corporation or LLC is to shield shareholders or owners from the risk of being sued for a business decision that goes poorly. What happens, though, when the entity is a sham being used to perpetrate fraud? How are officers, directors, members, and managers held accountable for their …
Negligent Hiring in Texas
Texas employers have an obligation to ensure the trustworthiness, reliability, and expertise of their employees. If they neglect those responsibilities, and someone suffers as a direct result, then those employers are guilty of negligent hiring. The Elements of Negligent Hiring To successfully make a claim for negligent hiring, a plaintiff must prove that the defendant …
Keys to Drafting a Valid Non-Compete in Texas
Definition In Texas, a business can limit an employee’s ability to compete against that business when she or he is no longer employed there. A non-compete agreement helps protect businesses from losing clients and/or proprietary information if an employee moves to another job. A non-compete agreement in Texas usually must be part of an employee …
Trade Secret Misappropriation in Texas
Unique practices and proprietary information, sometimes known as trade secrets, help a business stay competitive. When someone wrongly obtains, shares, or uses a trade secret without consent, a business has a right to file a claim for misappropriation of trade secrets. For a business to protect its proprietary information with this claim, the information must …
Statutory Fraud in Texas
An act of fraud involves misrepresenting or deceiving someone, causing harm to that person in the process. Statutory fraud is a particular kind of fraud which involves real estate or a stock transaction. Texas law prohibits a person from using false or incomplete information when inducing another person to sign a contract. If the misrepresentation …
Tortious Interference with a Contract in Texas
Since contracts are legally binding, laws exist to prevent wrongful, or tortious, interference with existing contracts. That interference can occur when an outside party purposefully leads someone in a business agreement to break the terms of the agreement.
Consequential Damages in Texas
Breach of Contract of DamagesThe rule for calculating breach of contract damages states that the plaintiff is entitled to seek fair and just compensation for losses or damage actually sustained. Stewart v. Basey, 245 S.W.2d 484, 486 (Tex. 1952). The plaintiff may seek compensation for the “benefit of the bargain” or “expectation interest.” Id. The …