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I am sorry you are dealing with this situation. A persons liability in a breach of contract is limited to the economic loss that the party can prove. This is referred to actual damages as a result of the breach or termination of the contract. Often times when it would be difficult to determine economic damages. Absent language in the contract, the burden is on the suing party to prove they suffered an economic loss.
However, the party must first establish that there was a breach of contract. If the performance of the contract is based on a condition (i.e. one party obtaining funding) and that condition is not met after good faith efforts, then arguably a breach did not occur because the condition could not be met in order for performance to occur.
In short, they have to prove a breach of contract occurred and if so then your liability would be limited their actual damages that they can prove (not speculate) they loss as a result of you breaking off ties.
If you actually are sued, you should retain a local lawyer immediately to deal with the suit and hopefully put an end to the nonsense.
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