Can Texas courts award punitive damages for breach of contract?

In Texas, punitive damages are generally not awarded for breach of contract claims unless there are accompanying tort claims that warrant such damages. This is because punitive damages serve as a means of punishment for wrongful conduct and deterrence, which is more applicable in tort cases where a party has acted maliciously or with gross negligence. Breach of contract itself is typically viewed as a failure to meet contractual obligations rather than a tortious act.

In cases where a breach of contract is coupled with a tort claim, such as fraud, intentional infliction of emotional distress, or another actionable tort, the court may allow punitive damages to address the wrongfulness of the conduct in question. This aligns with Texas law, which aims to restrict punitive damages to situations where a party's actions have gone beyond mere breach of contract and into the realm of tortious behavior.

The other options do not accurately reflect Texas law. For instance, punitive damages are not available in all breach of contract cases, nor are they awarded based solely on the perceived fairness of a contract. Additionally, punitive damages are indeed recognized in Texas law, but their application is limited to cases involving tort claims.