Limited cooperative associations in Colorado will likely need to market their goods or services in order to attract clients or customers. Contracts form the backbone of many marketing dealings. However, sometimes the marketer fails to uphold their end of the agreement and breaches the marketing contract. When this happens, a limited cooperative association may be able to pursue damages under Colorado law.
One type of damages that may be available to limited cooperative associations when the marketer either breaches the marketing contract or when there is an anticipatory repudiation that a breach is inevitable, liquidated damages may be sought. However, these damages must be reasonable with regards to either the actual or anticipated harm that the limited cooperative association suffered due to the breach or repudiation.
Other types of damages
Liquidated damages are not the only type of damages a limited cooperative association may pursue if a marketing contract is breached or there is anticipatory repudiation of a breach. One remedy a court may order is an injunction to prevent further breach. Also, the court may order specific performance. These types of damages may be desirable if liquidated damages would be an insufficient remedy.
Ultimately, this post only scratches the surface of remedies for breach of a marketing contract. It does not contain legal advice. Limited cooperative associations who believe that a marketing contract has been or will be breached will want to seek the advice of a professional to determine what steps to take moving forward.