How specific performance helps resolve breach of contract issues

On Behalf of | Nov 1, 2024 | Business Law |

Contracts are written records of the agreements between people and organizations. By committing terms to writing, the parties to an agreement help make those terms enforceable. 

Businesses sign contracts with workers, suppliers and a variety of other parties period The purpose of business contracts is to protect the organization by controlling costs and limiting liability. Unfortunately, not all parties who sign contracts uphold the terms they initially agreed to as they should. 

Contract breaches can cause a host of operational complications ranging from facilities that businesses cannot reopen due to incomplete construction work to delayed manufacturing because of the lack of supplies. Requesting specific performance from the courts can be a way for companies to mitigate the harm caused in a breach of contract scenario. 

What is specific performance? 

An order of specific performance is a court order requiring that one party complete certain actions. Specific performance can range from requirements to deliver goods or complete a sale to orders to redo inadequate work. 

Orders of specific performance are useful in scenarios where simply seeking damages may not fully remedy the situation. Judges can issue an order of specific performance that aligns completely with the prior contract or that includes unique details based on the impact that the contract breach has had on the affected organization. 

Discussing the impact that a breach of contract has had on an organization can help those addressing the issue determine the best option for resolving the issue. Requesting specific forms of relief when filing a breach of contract lawsuit can lead to a more satisfactory outcome to a frustrating and potentially costly situation.