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When can specific performance be ordered after a contract breach?

On Behalf of | Mar 27, 2024 | Business Litigation |

When another party to a contract fails to uphold their end of a bargain, there are various legal remedies available to make a party to an enforceable contractual agreement “whole.” One such remedy is specific performance. It compels a breaching party to fulfill their contractual obligations as specified in the contract in question.

Specific performance is usually ordered in unique cases where monetary damages would not be sufficient to remedy a breach or compensate an affected party for the losses it has suffered. As it is only available for some contracts, whether specific performance will be granted largely depends on the circumstances of each case and the court’s discretion.

Factors that may influence specific performance as a remedy

Specific performance is more likely to be granted when the subject matter of a contract is unique or rare, such as a particular piece of real estate or artwork, and monetary damages would not adequately address the breach. Additionally, the specific performance must be feasible, meaning that it must be possible for the breaching party to fulfill their obligations. If it is impossible or impractical for the breaching party to perform, the court may not order specific performance. The court will also consider if it is fair to compel the breaching party to perform, considering the conduct of both parties and other relevant facts of a case.

Seeking qualified guidance after a contract breach can help you understand your remedy options, how they work and your legal rights as a breaching or non-breaching party. This can go a long way in protecting your interests and resolving the issue at hand efficiently and fairly.