What is Specific Performance and When Can it Be Used?
When we think of suing for breach of a contract, we often think about monetary damages; what have we lost, in money, as a result of the breach. But what about performance? Can a court, instead of, or in addition to, monetary damages, order a person or business to do something that it was supposed to do under a contract?
Constitutional Limits
The answer is yes, a court can do that, with certain limitations. Because of the 13th amendment, originally intended to abolish slavery, courts don’t have the ability to order someone to do work, or any type of personal service that is owed under a contract, if they don’t want to do that work.
So, for example, a court cannot tell a painter who doesn’t do a job they were paid for, to get out and do the work, or else be punished. Non-criminal, civil courts, can punish people monetarily, but can’t order that they work or act against their free will.
So When Can You Get Specific Performance?
But there are occasions, where a court can order performance under a contract, such as when performance isn’t a personal service contract.
So, for example, imagine that there was a contract for the sale of a business. You pay for the business, but the seller never truly legally transfers the business’ assets to you. If you sued, and you won, the court could have the authority to order that the business’ assets be transferred to you.
The same goes for certain real estate contracts. If there is a dispute over such a contract the parties may argue about whether a seller must legally transfer ownership of a property to the buyer under a contract. The court can legally order that the house be sold or transferred.
Common Scenarios
One commonality you may be seeing in these specific performance examples is ownership; in situations where ownership of property is at issue, specific performance can be used to ask the court to award the property to one party or the other.
Another commonality is that money doesn’t cut it. If, in our example above, you contracted for and want a home, and there is a dispute over who gets the home, money cannot replace the loss—a home is unique, and each is different.
An aggrieved buyer who says that he should get the home pursuant to a valid contract, can be paid money, but that won’t give the buyer that particular home, which may have meaning or value beyond dollars.
The same goes for disputes over anything unique, like antiques or collectors items, or even shares or stock.
When and if specific performance is asked for and granted by a court the judgement itself can be filed in the public records, to serve as title to the property, and demonstration of ownership.
What remedies do you have in your breach of contract case? Call our Fort Lauderdale business and commercial litigation lawyers at Sweeney Law P.A. at 954-440-3993 for help.
Sources:
findlaw.com/smallbusiness/business-contracts-forms/what-is-specific-performance-as-a-legal-remedy.html
openyls.law.yale.edu/handle/20.500.13051/310
