In Texas contract law, what happens if a party fails to perform their obligations?

In Texas contract law, when a party fails to perform their obligations under a contract, they may be held liable for breach of contract. This means that the non-performing party has not fulfilled their contractual duties, which can result in legal consequences. The non-breaching party may seek remedies such as damages, specific performance, or cancellation of the contract.

Liability for breach does not immediately release the party from their obligations or terminate the contract, and it does not inherently allow for renegotiation. Instead, the focus is on addressing the failure to perform and the resulting impact on the parties involved. Breach of contract establishes a legal basis for the injured party to claim compensation or seek a resolution to the dispute.