When one party fails to uphold their end of a contract, the resulting breach can lead to financial loss, project delays, and damaged relationships. In Colorado, contract law provides several legal remedies to compensate the non-breaching party or to enforce the terms of the agreement. Whether you are a business owner, contractor, landlord, or service provider, understanding your options can help you protect your interests. A Denver breach of contract lawyer can guide you through the legal process and help you pursue the remedy that best fits your situation.

What Is a Breach of Contract?

A breach of contract occurs when one party fails to perform as promised under a valid agreement. This can take several forms, including:

Failure to deliver goods or services

Late performance or delivery

Incomplete or defective performance

Refusal to pay as agreed

In Colorado, both written and oral contracts can be enforceable, although proving the terms of an oral contract may be more difficult. If a breach occurs, the non-breaching party may be entitled to remedies under Colorado law.

Types of Breaches Recognized in Colorado

Before seeking a remedy, it’s important to understand the type of breach involved. Colorado law recognizes two primary categories:

Material Breach – A significant failure that defeats the purpose of the contract and entitles the nonbreaching party to stop performance and seek damages.

Minor (Partial) Breach – A less serious violation that does not excuse the non-breaching party from their obligations but may still entitle them to compensation.

A Denver breach of contract lawyer can help evaluate the nature of the breach and determine the best course of action based on your specific case.

Legal Remedies for Breach of Contract in Colorado

If a breach occurs, the non-breaching party may be entitled to one or more legal remedies. These remedies fall into two broad categories: monetary damages and equitable remedies.

1. Compensatory Damages

Compensatory damages are intended to make the injured party “whole” by placing them in the position they would have been in had the breach not occurred. These damages can include:

Direct Damages – The actual financial loss directly caused by the breach (e.g., lost profits, cost of replacement).

Consequential Damages – Losses that result indirectly from the breach, such as loss of business opportunities or reputational harm. These must be foreseeable at the time of contract formation.

To recover compensatory damages, you’ll need to show clear evidence of the breach and the resulting losses. A Denver breach of contract lawyer can help you gather documentation and present a strong case.

2. Liquidated Damages

Some contracts include a liquidated damages clause, which specifies a set amount of money that must be paid if a party breaches the agreement. Colorado courts will enforce these clauses if:

The amount is reasonable in light of the anticipated harm, and

The actual damages would be difficult to measure.

If the amount is deemed excessive or punitive, a court may refuse to enforce the clause.

3. Nominal Damages

In cases where a breach occurred but no significant financial harm resulted, a court may award nominal damages (often a small symbolic amount, such as $1). This serves to recognize that a legal wrong occurred, even if there were no measurable damages.

4. Specific Performance

Specific performance is an equitable remedy that requires the breaching party to fulfill their contractual obligations. Courts in Colorado may order specific performance when:

The subject of the contract is unique (e.g., real estate, rare items), and

Monetary damages would be inadequate to remedy the harm. This remedy is typically used in real estate contracts, where every parcel of land is considered legally unique. If you're facing a breach in a property-related agreement, a Denver breach of contract lawyer can assess whether specific performance is appropriate.

5. Rescission

Rescission cancels the contract and returns both parties to their pre-contract positions. This remedy is often used when:

There was a mutual mistake,

One party lacked capacity, or

Fraud or misrepresentation occurred.

In Colorado, a party may seek rescission if they can prove that enforcing the contract would be unfair due to one of these issues.

6. Restitution

Restitution is a remedy that requires the breaching party to return any benefit or value they received under the contract. This is often paired with rescission, but it can also stand alone if one party unjustly benefits at the other’s expense.

Duty to Mitigate Damages

Colorado law requires the non-breaching party to take reasonable steps to mitigate their damages after a breach occurs. This means they must attempt to reduce their losses by, for example, finding a replacement contractor or alternative vendor. Failure to mitigate may reduce the amount of damages you can recover.

Working with a Denver breach of contract lawyer ensures that you take the right steps to preserve your claim and maximize your recovery.

Choosing the Right Remedy

The appropriate remedy will depend on the circumstances of the breach, the nature of the contract, and the damages suffered. In some cases, monetary compensation may be sufficient. In others, equitable remedies like specific performance or rescission may be more appropriate. A skilled attorney can help evaluate your goals and develop a strategy tailored to your needs.

Why You Need a Denver Breach of Contract Lawyer

Contract disputes can quickly become complex. A Denver breach of contract lawyer can:

Analyze your contract and determine your legal rights

Evaluate the strength of your claim or defense

Identify the most effective remedy

Represent you in negotiations, mediation, or litigation

Whether you’re pursuing a claim or defending against one, having experienced legal counsel can make all the difference in achieving a favorable outcome. If you're facing a contract dispute in Denver or anywhere in Colorado, don’t navigate it alone. Contact a trusted Denver breach of contract lawyer to protect your interests and find the right legal remedy for your situation.