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What Happens When Someone Breaches An Agreement?

The business world relies on contracts to ensure individuals, companies, or parties act as promised and expected. When someone breaches a valid agreement or contract, that means they have failed to follow through with what they agreed to do without a lawful reason.

When this happens, the non-breaching party’s Colorado breach of contract lawyer may file a lawsuit against the breaching party. In breach of contract disputes, a judge must determine whether the case involves a minor or significant breach to determine the specific types of damages to award the non-breaching party.

What to Do If an Agreement Has Been Breached?

All parties, especially the breaching party, must review the contract to see what they should do. Depending on the agreement, they may have some time to resolve the issue before the court gets involved. Some agreements, however, will be terminated automatically when a breach occurs.

If the breaching party cannot resolve the breach, they can try talking to the other party as soon as possible. In some cases, the parties may resolve the issue without going to court by fulfilling the agreement’s requirements in another way. Doing so will show the court they tried their best to resolve the situation and help the judge determine the best course of action should the case go to court.

It is vital to note, however, that the non-breaching party isn’t legally obligated to agree to an alternative remedy that doesn’t adequately compensate them for the losses resulting from the breach or doesn’t completely resolve the breach. In this situation, the non-breaching party can file a lawsuit against the -breaching party to recover the damages they suffered from the breach.

They should also review the contract to see if there are any terms stating whether or not they can take legal action. For instance, some contracts include terms that parties can only enter into arbitration or mediation in case a breach occurs. In addition, others may specify a procedure or time limit the parties must follow before taking any legal action.

If the non-breaching party wins their lawsuit, the judge will award them equitable or legal remedies. Legal remedies are monetary damages, including compensatory, liquidated, and nominal damages. A judge usually issues equitable remedies when legal remedies are not enough to cover all the party’s losses. These can include rescission, reformation, or specific performance.

Reach Out to Our Seasoned Colorado Breach of Contract Lawyers

Contract disputes can become more complicated if not resolved right away because there are usually underlying complexities that parties may not be aware of. If you are dealing with contract disputes or breaches, you can count on the Colorado breach of contract lawyers at Brown Dunning Walker Fein Drusch PC to guide you through the maze of contract law issues and find a resolution that is in the best interests of your business.

Get started on your case and arrange your consultation with our Colorado business lawyers by filling out our online contact form or calling 303-329-3363.