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Understanding specific performance for settling a breach of contract

On Behalf of | Jan 4, 2023 | Contract Law

When a breach of contract occurs, the most common remedy is monetary damages. You may not realize that there could be other remedies for this situation. However, the options depend on the nature of the contract in question.

In some situations, money will not provide sufficient relief for the wronged party. This means other options are necessary.

Understanding specific performance as a breach of contract remedy

The court may settle a breach of contract case by ordering the at-fault party to fulfill their end of the contract. This is called “specific performance.”

Along those same lines, the court may use an injunction, which is like a specific performance. The difference is that instead of ordering a specific action by the other party, the injunction orders this not to occur. The purpose of an injunction is to help prevent additional damage while the case is still being settled in court. An injunction may be permanent or temporary.

There is also the option to cancel the contract. This means you do not have to uphold your end of the contract and part ways with the other party.

The right remedy depends on the type of breach

The damages you can receive for the situation depend on the actual breach that occurs. For example, canceling the contract will be the only remedy if the damage is material. Also, specific performance can be used for contracts where something cannot be replaced easily or if monetary damages don’t make sense.

Knowing your rights after a breach of contract

Going into business means you will likely have to deal with a breach of contract situation. Knowing your rights and legal options to handle this will help you protect yourself and your business.  



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