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 […]
Category: Business Law
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 […]
What is a Letter of Intent?
A letter of intent is a preliminary document, commonly used in commercial transactions, to outline the eventual terms to be included in a formal contract to follow later. It can be used for a variety of reasons: to protect confidential information, outline terms, or to evidence the parties’ interest and desire to complete a transaction. Letters of […]
Oil & Gas Indemnity Agreements in Texas
In the energy industry, it is common for parties to enter into legal agreements directing drilling and day-to-day operations of oil and gas wells. These agreements are commonly known as master service agreements.Master Service Agreements and IndemnityThese agreements detail the rights and obligations that each party has during drilling operations. Prior to 1985, parties involved […]
Force Majeure Clauses and Coronavirus
The spread of COVID-19 has proved incredibly disruptive, forcing the postponement or cancellation of many private and public events. High profile events that suffered cancellation included the Houston Livestock Show and Rodeo and Austin’s iconic South by Southwest (SXSW). State and local orders mandating social distancing have also made many private events impossible, including weddings, […]
What the Coronavirus $2T Stimulus Package Means for TX Small Business
Small businesses across Texas have been crippled because of “stay at home” and “shelter in place” orders due to the coronavirus pandemic. Most recently, Governor Abbott signed an executive order consolidating its local predecessors and limiting non-essential activity until April 30, 2020. In order to rescue America’s economy, the federal government recently passed into law, […]