Types of Damages Recoverable in New Mexico When a Contract Has Been Breached

A breach of contract can be complex and financially burdensome, often necessitating the legal services of a breach of contract attorney in New Mexico to ensure your rights and interests are protected.

At the Sitterly Law Firm, Nick Sitterly is dedicated to helping clients navigate the complexities of contract disputes. As an experienced breach of contract lawyer, he combines his in-depth legal knowledge with a client-focused approach to provide unmatched support throughout this legal process.

This blog post will delve into the legal framework in New Mexico concerning breach of contract, the types of damages recoverable, common breach cases, and the remedies and legal procedures involved.

Types of False Confessions

False confessions are caused for various reasons. If your case fits one of these situations below, contacting our police misconduct attorney is best to proceed mindfully.

Understanding Breach of Contract

A breach of contract happens when one party fails to fulfill their contractual obligations. In New Mexico, like in many other jurisdictions, contracts may be explicit or implicit and are subject to regulation through a combination of statutory law and legal precedents.

When a breach of contract occurs, the non-breaching party is typically entitled to seek legal remedies to compensate for the resulting losses.

Types of Damages Recoverable

There are two primary types of recoverable damages for a breach of contract. 

Compensatory Damages

Compensatory damages are the most common type of damages recoverable from a breach of contract lawsuit. These damages aim to compensate the non-breaching party for the losses they have suffered due to the breach. 

They can be further divided into two categories.

  • General Damages

    General damages are the actual losses incurred as a direct result of the breach. For instance, if a supplier fails to deliver goods as specified in a contract, the injured party can seek direct damages for the cost of purchasing the goods from an alternative source at a higher price.

  • Consequential (Special) Damages

    Consequential damages are indirect losses that are not a direct result of the breach but are reasonably foreseeable. For example, if a construction contractor delays a project, resulting in a loss of income for the business owner, those lost earnings can be claimed as consequential damages.

Liquidation or Limitation of Damages

Some contracts may include clauses that limit or specify the types of damages recoverable from a breach of contract claim. These clauses are called liquidated damages clauses. 

While New Mexico courts generally uphold such clauses, they must be reasonable and reflect a genuine pre-estimate of potential losses. If the liquidated damages clause is deemed punitive or unreasonable, the district court may invalidate it.

Common Breach Cases in New Mexico

Breach of contract cases can arise in various contexts. Here are a few common scenarios in New Mexico.

Real Estate Contracts

Contractual disputes often occur in real estate, such as failure to close on time, disputes over property conditions, or disagreements about earnest money deposits.

Business Contracts

Breaches can happen in business agreements involving partnerships, joint ventures, or employment contracts. These may include issues such as compensation disputes.

Construction Contracts

Breach of contract disputes can lead to delays, defects, or disputes over payment in construction contracts.

Lease Agreements

Landlords and tenants may experience breaches in lease agreements related to rent payments, property maintenance, or eviction proceedings.

Remedies and Legal Procedures

In New Mexico, the non-breaching party can seek remedies for breach of contract through legal procedures.

Specific Performance

In some cases, a court may order the breaching party to perform their legal obligations based on the agreed-upon terms.

Monetary Damages

As discussed earlier, compensatory damages can be awarded to compensate for the losses suffered due to the non-performance of a contract.


In certain situations, the contract can be canceled, and the parties can return to their pre-contract positions.


An injunction is a court order that can prevent a party from taking certain actions that would further harm the non-breaching party’s interests.

Attorney’s Fees and Costs

In some cases, the prevailing party may be entitled to recover their contract dispute attorney’s fees and litigation costs.

Choose a Breach of Contract Attorney in New Mexico That Will Fight for You

At the Sitterly Law Firm, you can be sure your rights and interests are protected. Nick Sitterly’s diligence in gathering evidence and remarkable negotiating abilities guarantee relentless efforts in securing the compensation you rightfully deserve. Moreover, his selective caseload allows for the personalized attention your case requires.

When you choose the Sitterly Law Firm, you gain a tenacious advocate readily available to address your concerns and appear in court on your behalf. 

Contact Nick Sitterly, breach of contract attorney in New Mexico, for a consultation today.