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What is specific performance in a breach of contract situation?

On Behalf of | Nov 3, 2022 | Contract Law

There are various remedies available for you when a party breaches the terms of a legally binding contract. These remedies are meant to make you whole or, in other words, restore you to the position you would have been in had the breach not occurred.

Specific performance is one such remedy for a breach of contract. However, it is only used in exceptional circumstances, as discussed below.

Specific performance explained

When the court orders specific performance after a breach of contract, the other party is required to complete the contract and perform their end of the bargain as agreed. While monetary damages are preferred in most instances where a contract breach has occurred, there are cases where money cannot fully compensate you for the harm or losses suffered.

For instance, if the subject of the contract is unique and irreplaceable or the amount of damages you suffered from the breach is unclear, the court will likely order the breaching party to perform the contract. However, you must show that you have done your part and can continue to do so.

What is the best remedy for you?

Specific performance sounds like the perfect remedy because everything will proceed as you had planned. However, it is not always the case. You don’t want the other party performing the contract just because they are under court orders to do so. You may not be so pleased with the outcome.

It is worthwhile to seek an informed evaluation of your circumstances before taking action. With the necessary information, it will be easy for you to choose the most appropriate remedy. You will also be aware of the legal steps you need to take to protect your financial interests following a breach of contract.