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Two Colorado companies reaches settlement in breach of contract

Denver, Colorado has specific rules when it comes to retail marijuana sale. A person must be 21 or older to buy retail marijuana and related products. Also, only companies with a license to sell retail marijuana products are allowed to sell it. Dixie Elixirs & Edibles, which is owned by Dixie Holding of Denver, was established four years ago and has become a leading seller of medical marijuana-infused products. Dixie Elixirs faced a controversy recently when another company filed a lawsuit against them.

According to sources, Bridge Marketing, LLC accused Dixie Elixirs of breach of contract and trademark infringement. The contract disputes involved Dixie's sale and packaging of Bridge's marijuana-laced candy. The dispute ended after the two Colorado companies reached a settlement through an amicable separation agreement dissolving the business relationship between Bridge and Dixie Elixirs. Dixie will sell the remaining inventory of the products already produced by Bridge. A statement from Dixie Elixirs welcomed the settlement because they can now concentrate on developing their own product of proprietary mints, together with their other marijuana-infused products. Bridge, on the other hand, will find a different distributor or manufacturer for its product.

A business contract consists of obligations where people or companies who entered into the agreement must fulfill. If a company fails to perform its obligation in accordance with the contract, a breach of contract lawsuit may hold the offending company liable for the damages as the result of the breach.

Breach of contract may negatively affect a company's structure, reputation and revenues. It is essential for business owners to honor the agreement made for every transactions. The broad knowledge of a Denver commercial litigator regarding breach of contract and business law issues may be indispensable.

Source: Denver Business Journal, "Feuding Colorado pot companies settle edibles lawsuit," Dennis Huspeni, May 21, 2014

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