Client Contract Dispute Resolution

Ask Your Question For Free

Summary

If a client breaches a contract in Colorado after youve incurred costs, you may not have to return the funds. The law recognizes quantum meruit, meaning payment for the value of services rendered, and restitution to prevent unjust enrichment. Consult a local attorney for specific advice.

Full Conversation

I own a roofing business. I have a client that agreed to my contract terms and I have received the initial payments to begin the project. I have allocated these funds to purchase materials and pay personnel to get the project completed. Now the client has been delaying the start date multiple times and ultimately is communicating that he wants to “unwind” our contract.
Hello ****, I understand your situation. To provide you with the most accurate information, may I know in which state or country your business operates?
I am in the state of Colorado
Hello ****,
In Colorado, contract law generally protects parties who have fulfilled their obligations. If your client is breaching the contract, you may be entitled to damages.
- Colorado Contract Law: Breach of contract can constitute grounds for a lawsuit.
- Remedies: You may be entitled to compensation for your losses or specific performance enforcement.
You should consult with a local attorney for more detailed advice.
Am I obligated to return his monies, even though they have been spent per his request on the materials and personnel to complete the work?
In Colorado, if you've acted in good faith and already incurred costs, you might not have to return the funds:
- The law recognizes 'quantum meruit', meaning payment for the value of services rendered.
- Also, the concept of 'restitution' can apply, preventing unjust enrichment of the party who broke the contract.
Legal counsel can provide more specific advice.