Contract Dispute Lawyers in New Mexico

When parties to a contract agree to terms, they usually have the best intentions to honor the agreement. However, a contract dispute can arise even if the agreement is written and executed clearly.

If you run a business in New Mexico, there is a reasonable chance a contract dispute will happen eventually. Contract disputes are not unusual in the U.S.; one estimate is that approximately 9% of U.S. contracts involve a significant claim or dispute.

If you have a contract dispute, it can help to talk to a New Mexico contract dispute lawyer. Nix Patterson has years of experience resolving contract disputes, and we know how important it is to resolve the matter and return you to normal business operations.

Nix Patterson covers all litigation costs, so you never have out-of-pocket legal expenses affecting your bottom line during a contract dispute.

Types of Contract Disputes

The basis of New Mexico’s contract law is whether there is a valid and enforceable contract. If you retain Nix Patterson for contract dispute services, our team will first review your agreement to determine if any aspect is invalid, unenforceable, or voidable.

A contract dispute can involve a breach of contract, which is the failure of one party to perform any part of the existing contract without legal justification. In most cases, a breach of contract is either material or minor.

A minor breach happens when a party breaches part of the agreement, but the other party still gets the goods or services that the contract specified. For instance, if a New Mexico parts supplier delivered their goods late, that might be a minor breach. You still may be able to obtain damages in a claim, but you still likely need to perform according to contract terms because the breach did not affect the goods delivered.

A material breach happens when one party does not perform a clause in the contract, or the entire agreement, so you did not receive the goods or services. With the majority of material breaches, you can seek damages through breach of contract litigation, and you also may not be required to fulfill your end of the agreement.

Some examples of contract dispute cases in New Mexico include but are not limited to the following types of contracts:

  • Insurance policies
  • Partnership agreements
  • Purchase contracts
  • Construction contracts
  • Sales contracts
  • Commercial real estate leases
  • Franchise contracts

Contract Dispute Compensation

The remedies available in a contract dispute or breach of contract case depend on the facts and the harm suffered. Generally, the wronged party could be eligible to receive monetary damages or equitable remedies. Some possible monetary damages could be:

  • Compensatory damages, which compensate you for losses stemming from the dispute. It can include compensation for profits your company lost. The court might use the standard measure to determine the sum allowing you to purchase a replacement if the contract was not breached. Or, in a contract for goods case, damages are obtained by measuring the difference between the agreed-to price in the contract and market value when the goods are provided.
  • Liquidated damages, which are listed in some contracts, are an amount of money the parties agree up front will be owed if one party materially breaches the terms of the contract. Liquidated damages are used to put a number on breaches that are difficult to value and to incentivize the parties to keep their promises.
  • Legal fees, which cover the wronged party’s legal fees and related costs associated with bringing a claim.

Equitable remedies do not give you compensation for possible breach of contract losses. The most frequent equitable remedy is specific performance, meaning the judge may order the breaching party to fulfill its contractual obligations. In some situations, specific performance could be required if monetary damages are insufficient to compensate for your losses.

Consider Alternative Dispute Resolution

If a party violated a contract that affects your company, your first response could be to file litigation. While that may be necessary eventually, another option is to resolve the matter through alternative dispute resolution (ADR). A Nix Patterson contract dispute attorney may recommend two kinds of ADR to resolve the matter without going to court.

First, your contract could include an arbitration clause requiring a dispute to be resolved through arbitration. Arbitration clauses are commonly included in business contracts to solve the problem without a lawsuit. A neutral third party will listen to both sides of the contract dispute. The arbitrator issues a legally binding ruling that cannot be appealed.

Arbitration is similar to litigation, where the judge hears both sides and makes a ruling. But unlike going to court, arbitration allows the parties to keep the dispute out of the public eye. The process usually goes faster than if it goes to court before a judge.

Mediation is another type of ADR that can resolve a contract dispute. Mediation is like arbitration because it may be faster and less costly than litigation and is also confidential. But the mediator does not usually render a legally binding decision or hear the sides. Instead, the mediator simply assists the disputing parties in communicating to work out a resolution. Mediation can be binding, but only if all sides agree.

If alternative dispute resolution is ineffective, you should partner with a New Mexico contract dispute attorney to file a lawsuit. However, it is usually best to talk to an attorney about ADR options before litigation. Nix Patterson will discuss all of your alternative dispute resolution options and potential litigation scenarios.

What Is the Statute of Limitations for a New Mexico Contract Dispute?

New Mexico law states that an action for any breach of contract for sale has to be begun within four years of the cause of action. A cause of action happens when the breach of contract occurs, regardless of whether you were aware of the breach.

Contact Our New Mexico Contract Dispute Lawyers Today

If you have a contract dispute, you can rely on Nix Patteron’s contract dispute attorneys for legal advice. Our New Mexico attorneys understand the importance of resolving a contract as quickly and fairly as possible to get your company back to business. Contact the New Mexico contract dispute attorneys at Nix Patterson today.


Nix Patterson only works on a contingency fee basis. Our clients pay us nothing unless we win. Schedule a free consultation today. Call 512.328.5333 or complete the form below. 

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