§ 7-56-503 — Remedies for breach of marketing or purchasing contract

Colorado § 7-56-503

• Jurisdiction: Colorado
• Title 07: Corporations
• Art.: Cooperatives

Text

(1)
The bylaws or the marketing or purchasing contracts of an agricultural cooperative
may fix as liquidated damages specific sums to be paid by a member to the
cooperative upon the breach by the member of any provision of the marketing or
purchasing contract regarding the sale, purchase, receipt, or delivery or
withholding of products or other goods and may further provide that the member
will pay all costs, premiums for bonds, expenses, and fees if any action is brought
upon the contract by the cooperative. All such provisions shall be valid and
enforceable in the courts of this state, and clauses providing for liquidated
damages shall be enforceable as such and shall not be regarded as penalties.

(2) In the event of any breach or threatened breach of a marketing or
purchasing contract by a member, the cooperative shall be entitled to an injunction
to prevent the further breach of the contract and to a decree of specific
performance of the contract. Pending the adjudication of the action and upon filing
a sufficient bond and verified complaint showing the breach or threatened breach,
the cooperative shall be entitled to a temporary restraining order and preliminary
injunction against the member.

(3) In any action upon a marketing contract, it shall be conclusively
presumed that a landowner, landlord, or lessor is able to control the delivery of
products or other goods produced on such landowner's, landlord's, or lessor's land
by tenants or others whose tenancy or possession or work on such land or the terms
of whose tenancy or possession or labor on such land was created or changed after
execution by the landowner, landlord, or lessor of such marketing contract. The
remedies provided in this section for nondelivery or breach shall lie and be
enforceable against such landowner, landlord, or lessor in any such action upon a
marketing contract.

Legislative History

Source: L. 96: Entire article R&RE, p. 510, � 1, effective July 1.