When entities sign a business contract, it is generally with the expectation that both parties will abide by the agreement. However, during the course of doing business, there are many issues that could complicate the arrangement and result in contract disputes. When faced with these difficulties, many in Colorado may consider filing a breach of contract lawsuit.
If a breach of contract is alleged or occurs, many choose to first attempt mediation or other informal methods to resolve the dispute. When those avenues fail, the next step is typically to proceed with a lawsuit. In this stage, there are different kinds of remedies that can be sought for resolution of the complaint.
The most common remedy is for an injured party to seek damages. Damages can come in many forms, such as compensatory, punitive, nominal and liquidated. When damages are inadequate, a second type of relief called “specific performance” may be sought. This is generally used when the subject matter concerning the breach is unique or rare. Finally, a non-breaching party may seek cancellation and restitution, which allows the non-breaching party to be restored to its position before the contract breach occurred and voids the contract and relieves all parties of obligation in the agreement.
As evidenced, there are many ways to seek legal reparation when a breach of contract occurs. Most businesses in Colorado seek the advice of an experienced business law attorney, as each situation is unique. Attorneys who focus on this area of law will be in the best position to discuss the path that will result in the best possible outcome for their clients.