A breach of contract can be a frustrating setback for business operations. A vendor failing to deliver supplies could cause a variety of challenges. Manufacturing facilities may have to idle production lines or may run behind on delivering products to their customers. The failure of service providers to fulfill certain responsibilities, such as completing a remodel of a doctor’s office waiting room or issuing payroll checks, can cause a variety of expensive company setbacks.
When organizations pursue litigation in breach of contract scenarios, they can seek a number of different remedies based on the impact the breach had for the company. Requesting specific performance is one viable solution. A judge can require that the party in breach perform certain functions.
What are the benefits and drawbacks of requesting specific performance?
The benefits of specific performance
An order of specific performance mandates that one party perform certain tasks or risk being in contempt of court. They may have to redo work that didn’t meet contract standards, finish a project or deliver materials according to the contract.
Essentially, the civil courts can help enforce the expectations established in the initial contract. Specific performance can address issues that might cause losses for the plaintiff organization if they had to find an alternate supplier or service provider.
It can be the most expedient solution available in a scenario where the breach of contract dispute may have already lasted for multiple months without a satisfactory resolution. It can also serve as a powerful reminder to others that the contracts the company signs are valid and enforceable.
The risks of specific performance
The most obvious concern with an order of specific performance is the possibility of intentional non-compliance or malicious compliance. The defendant ordered to deliver goods or perform certain work may cut corners or otherwise seek to subvert the court order.
Providing mediocre service or low-quality products might technically fulfill the order of specific performance while leaving the plaintiff unsatisfied. Additionally, the other party that breached the contract may have access to the plaintiff’s facilities and could engage in some kind of retaliation.
In circumstances where the relationship between the two parties has already soured, an order of specific performance may not provide the best relief for the plaintiff. Other drawbacks include risking additional expenses and delays.
Reviewing the terms of the contract, the nature of the contract breach and the explanation for the breach provided by the other party with a skilled legal team can help those impacted by a breach of contract plan the best path forward. There are many different solutions available in a breach of contract lawsuit, and asking for damages or other solutions may be preferable to specific performance depending on the circumstances.