Common Business Litigation Pitfalls in Midland, Texas & How to Avoid Them

As a western Texas city in the Permian Basin, Midland is a major center for the state’s oil and gas industry. As drilling and extraction feed the local economy, other businesses have moved into Midland, leading to more contracts and contract disputes. Business litigation pitfalls can impact small business owner's ability to operate and their bottom line. The Midland business attorneys at Carabin Shaw help business owners navigate the complexities of business litigation, protecting their rights and profits.

If you are struggling with a dispute, our team is available 24/7 to schedule your free case review in English or Spanish. Contact us toll-free at 800-862-1260 to learn more about how our Texas lawyers can help your case.

Business agreements usually begin with a contract, which is an agreement on mutual obligations between parties. Litigation prevention starts with an airtight contract, keeping these rules in mind:

Texas follows the statute of frauds, which requires some contracts to be enforceable in writing, such as real estate transactions and sales of goods over a specific dollar amount. Although verbal agreements can be legally binding in other circumstances, they are more challenging to enforce due to misunderstandings over terms. A written contract that clearly outlines the terms of your agreement is your best bet for protecting the interests of all parties.

Your contract is only effective if the terms are spelled out to avoid misunderstandings and business disputes in Midland TX. When creating your contract, avoid these mistakes:

• Vague language that can be interpreted in different ways
• Contradictory terms that lead to uncertainty
• Failure to include details like schedules, standards, and payments

Enlist an attorney at the drafting stage to ensure your contract is clear. Our team draws contracts with all the necessary details and clarity to prevent problems.

Once the contract is completed, familiarize yourself with every obligation, from payment terms to delivery dates. Your Midland lawyer can explain any specifics you are unsure about. When all parties fully comprehend the contract terms, the risk of a breach of contract that could end up in court is low.

Even the most ironclad contract can lead to a disagreement, so spell out your resolution terms within the document, such as:

• Choice of law provision to identify the law that applies if a dispute occurs
• Dispute resolution clause outlining how to resolve disagreements
• Severability provision so if one contract part is invalid, the rest remains intact

These clauses should provide a clear path should a disagreement occur. As long as the clauses comply with Texas law, all parties can resolve disputes without going to court.

Consult a legal team before drafting or reviewing any contract to comply with Texas law and prevent legal pitfalls. Even the most experienced business owner can miss a contract detail, which creates problems later. Your legal professional will scour every line and detail of your contract to protect your rights in any business transaction.

Texas’s oil and gas industry presents unique challenges for land and mineral estate owners. Despite signing a lease with an oil and gas company, estate owners may not receive fair treatment from the larger and more powerful entity. Common disputes may include:

• The amount or timing of royalty payments
• Amount and value of extracted resources
• Surface land use and conservation
• Ownership of the surface or mineral estate

A comprehensive contract between all parties is the best way to prevent disputes. Our legal team of trusted attorneys at Carabin Shaw specializes in oil and gas litigation in Midland, Texas, and helps estate owners protect their rights and profits.

If you are struggling with a contract dispute, Carabin Shaw’s attorneys can help. We work with businesses of all sizes to resolve disputes that can significantly impact a company’s bottom line. We offer our services on a contingency-fee-basis for some clients and provide reasonable fees and flexible payment schedules for others. Check our client reviews to see how we handle business litigation, then call us at 800-862-1260 to learn more.

For more information:

• Cornell Law
• Texas Statutes 26
• Cornell Law