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How specific performance can solve breach of contract issues

On Behalf of | Sep 24, 2024 | BUSINESS & COMMERCIAL LAW - Business Torts

Expecting another business to follow through on a contractual arrangement can lead to disappointments, operational setbacks and financial losses. Even when a written agreement is quite clear when establishing the obligations of each party, sometimes vendors, service providers, landlords and others fail to follow through on their promises. 

Other parties may fail to fulfill their contractual obligations and may not respond to initial attempts to discuss the matter. It may then be necessary to explore a breach of contract lawsuit. One of the various legal solutions possible after a contract breach is a judge ordering specific performance. 

What does an order of specific performance do? 

Judges who review contracts and determine that a breach occurred can resolve the matter in many different ways. They can order the party that violated the agreement to pay damages to the plaintiff. They can potentially terminate the contracts, thereby absolving the plaintiff of any future obligations to the defendant. 

They can also order specific performance. Specific performance is often an option when monetary awards cannot fully resolve the issue. An order of specific performance makes it necessary for the defendant to perform specific actions. 

They may need to deliver materials, complete a project or redo work that did not meet contractual standards. Unlike the initial contract, an order of specific performance carries the weight of the courts. Failing to fulfill an order of specific performance can lead to significant consequences. 

Filing a breach of contract lawsuit can help remedy contract issues that cause operational disruptions for businesses. Specific performance can be a valuable remedy in some cases. Businesses may need to consider the situation carefully to ask the courts for the right solution given their circumstances. 

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