What happens if I breach a contract?

If you breach a contract in New Mexico, you may be held liable for damages. This means that the other party can seek compensation from you for economic losses resulting from the breach. This could include any missed payments, costs associated with making repairs or corrective measures, and/or interest charges. It is important to note that any breach of contract will be evaluated on a case-by-case basis. The court will also consider whether the other party has been able to mitigate any losses by taking steps to limit the effects of the breach. This could include the other party finding a replacement tenant or buyer, or other measures designed to limit the economic damages caused by the breach. In addition, the court may order specific performance as a remedy for breach of contract if it is determined that the other party would have suffered irreparable harm from the breach. With specific performance, the court may order the breaching party to take specific steps to comply with the contract, such as providing compensation or completing repair or other corrective measures. Finally, the court may award punitive damages to the non-breaching party in some cases where the breach was particularly willful or malicious. This could result in the breaching party having to pay additional damages beyond the ones associated with compensating for economic losses. It is important to follow all terms of your contract, as any breach may result in costly damages or penalties. If you do find yourself in a situation where a breach of contract has occurred, it is best to seek legal advice to ensure you understand your options and potential consequences.

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What happens if I breach a contract?

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