A written contract should be a way to ensure compliance with an agreement. Businesses negotiate contracts with landlords, investors, employees and suppliers. A contract clarifies what each party expects from the other and what they intend to provide.
The purpose of a written contract is largely to make an agreement both verifiable and enforceable. Sadly, some people sign contracts without truly intending to follow through on their obligations. Businesses may hire a contractor to renovate the waiting room of their facilities, only to have the professional take their deposit and never finish the work. A vendor might fail to deliver materials, leading to the company struggling to fulfill its promises to others. In such scenarios, filing a breach of contract lawsuit can be a reasonable reaction. Judges have the authority to offer several forms of relief in a breach of contract situation. Specific performance can be helpful in some circumstances.
What is specific performance?
Specific performance is a form of legal remedy that involves a judge ordering one party to complete certain actions. An order of specific performance can be a way of upholding or enforcing a contract. A judge can issue an order of specific performance that requires a service provider to fulfill contractual obligations.
An order of specific performance can also be a remedy for the poor performance of one party. If the services or materials provided don’t meet expectations or contractual standards, a judge can order the party to redo work or replace materials that do not conform to the terms of the agreement. Specific performance can be a viable contract solution because it corrects the breach of contract.
When might other solutions be preferable?
Specific performance can be useful in a variety of situations, but it may not always be the best option. Requesting specific performance may not be the appropriate solution in scenarios where the contract breach or other disputes have resulted in an absolute loss of trust between the parties.
The plaintiff may want to seek other forms of relief, such as monetary damages, if there is reason to suspect that the defendant may engage in malicious compliance. They may find ways to fulfill the terms of the court order while still disappointing or frustrating the plaintiff.
In some cases, the professional or business subject to the breach of contract lawsuit may have proven incapable or incompetent. The business may have become insolvent and may not be able to perform the work as promised.
In scenarios where there are questions about the intentions or capabilities of the other party, an order of specific performance may not be the best solution for a significant breach of contract. Reviewing the contract and the circumstances constituting a breach can help business owners and executives explore their options for remedying the situation.