It is quite common for businesses and independent contractors to fail to uphold their contractual obligations to others. Contract litigation is often the first and most effective solution available in a contract breach scenario. The plaintiff can request a number of different solutions from the courts, including damages if the other party’s breach of the contract costs the organization money. Sometimes, requesting an order of specific performance can be an option.
Specific performance is way to mandate the completion of a project, the correction of substandard work or the delivery of certain materials. In some scenarios, warning signs – like the three below – can be strong indicators that specific performance is not the ideal solution to a contract issue.
When emotions run high
People generally do not appreciate having attention focused on their failures. Whether the party in breach of the contract is an independent professional or a business owner, they may be resentful and bitter about the lawsuit. After all, breach of contract litigation costs money and can damage the reputation of a professional or organization.
If the other party has become antagonistic, there is a reason to worry about malicious compliance. They might adhere to the base requirements in the order of specific performance while intentionally making things as difficult as possible for the plaintiff.
When the other business isn’t solvent
Another reason to shy away from specific performance as a solution for a contract breach is the possibility of financial struggles affecting the quality of goods or services. When an organization has to start cutting corners by letting workers go or limiting the time committed to projects, the work provided by the company might not meet the standards of the client anymore.
Similarly, if a company has begun scaling back quality when sourcing materials due to costs, that could also lead to dissatisfaction with the finished product. Even in cases where the order of specific performance requires the delivery of goods and materials, a company’s financial struggles might mean that the materials or goods provided are not of the same standard as what the company previously provided or promised.
When the plaintiff has resolved the issue
Frequently, if a vendor doesn’t supply materials or a contractor doesn’t finish a project, a company may have few choices other than to push ahead with alternate solutions. The company may have paid more for same day delivery from another vendor or may hired a different business to complete an unfinished project. An order of specific performance may not properly address the losses the company incurred. Instead, a request for damages might be more reasonable in such scenarios.
Ideally, plaintiffs pursuing breach of contract litigation request solutions that are appropriate given the nature of the breach that has occurred and reasonable given the impact that a breach has had on the company at issue. Specific performance is one of many possible solutions available when a breach of contract causes hardship for an organization.