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When should you use a specific performance clause?

Contracts are the lifeblood of any practical business model. Companies use them to hold others and themselves accountable for every transaction or deal. Many will feature different clauses to address potential issues specific to the agreement, and one of those is a specific performance clause. Not a part of every contract, specific performance clauses can ensure that a party completes the contract’s terms. So, rather than seeking monetary damages for a contract breach, the plaintiff asks the courts to require the defendant to follow through on a valid contract initially agreed upon by both parties.

Proving a specific performance breach

The plaintiff will need to argue one or more of the following points successfully:

  • The overarching contract is valid and enforceable.
  • The defendant could meet the terms but failed to do so.
  • The plaintiff has fulfilled their contractual obligations.
  • Monetary or even punitive damages are not enough.

When to use one

Companies rely on these to get one-of-a-kind, rare, special, or unique services or products. Specific performance disputes are often complicated, but straightforward examples include:

  • The purchase of original artwork
  • Specialized services by a vendor
  • Agreements to purchase a company
  • The sale of real property

Drafting a valid contract is essential

Companies rely upon the strength and enforceability of a contract to get things done, which in turn contributes to their long-term success. Working with a skilled business law attorney helps ensure that the contract is fair and equitable and includes all appropriate clauses. Companies can rely on these contracts if disputes arise to hold others accountable, even employing litigation to protect their interests.