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- Is a breach of contract automatically a Texas DTPA violation?
Is a breach of contract automatically a Texas DTPA violation?
Direct Answer
No. A simple breach of contract is not automatically a violation of the Texas DTPA. The DTPA requires a false, misleading, or deceptive act, an unconscionable action, or a breach of warranty—not merely a failure to perform contractual obligations. However, if a party made false representations to induce the contract or never intended to perform, those acts may separately violate the DTPA.
Rule Under Texas Law
- The DTPA does not create a cause of action for breach of contract alone.
- There must be a separate deceptive act, unconscionable conduct, or warranty breach.
- Breach of an express warranty made part of the basis of the bargain can be actionable under the DTPA.
- False representations made to induce the contract are distinct from later non-performance.
What You Must Prove
- The defendant made a false representation or engaged in deceptive conduct beyond mere non-performance.
- The deceptive act was separate from the breach of contract.
- The claimant is a consumer under the DTPA.
- The deceptive act was a producing cause of actual damages.
Common Defenses
- The claim is solely for breach of contract with no separate deceptive act.
- No false representations were made during contract formation.
- The defendant intended to perform but failed due to circumstances beyond their control.
- The claim is barred by the statute of limitations.
Related Texas DTPA Pages
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