When a business, a client, or a vendor that you work with fails to perform under a contract, it can cause serious financial harm. You may rely upon another company following through with their promises, and your other contracts, dealings, and financial decisions might be riding on that deal going through. In some cases, suing for “specific performance” after a breach of contract might be the best way to enforce the contract and complete the transaction in question.
The Baltimore specific performance dispute attorneys at the Heyman Law Firm represent businesses and corporations in breach of contract cases, fighting for the appropriate remedies for our clients. When ensuring that a contract is completed is the best way to resolve your case, our attorneys will diligently work toward getting a judge to order specific performance in your case. To schedule a consultation with our lawyers and learn how specific performance may be an available remedy in your case, contact our law offices today at (410) 305-9287.
What is Specific Performance in Maryland?
When someone breaches a contract, the other parties to the contract might have multiple options for remedies. In many cases, the breaching party can pay the injured party financial damages to make up for the breach. This may include returning funds that were supposed to be used to purchase goods or services or paying damages to cover the increased cost of replacing the contracted goods or services with goods or services from another seller. Other consequential damages are also common.
However, some contract cases rely on the specific items or services discussed in the contract. One of the most common examples of this is a real estate contract, where the purchaser needs a particular piece of property. If the seller breaches the contract, finding another piece of “replacement” real estate may be impossible or unfeasible, and financial damages may not be sufficient to rectify the issue.
In these cases, judges may order specific performance. Specific performance requires the breaching party to follow through with the contract as agreed. A judge’s court order holds more legal weight than the initial contract, and a court order for specific performance can guarantee the case will be resolved with the parties delivering on their promises.
When is Specific Performance Available in a Maryland Breach of Contract Claim?
In most cases, specific performance may be unavailable as a remedy, or it may be simpler to resolve the case with financial damages. Especially in the case of fungible goods or cases where services with comparable skill are available, a judge may be unwilling to order specific performance. Instead, specific performance is reserved for situations where the best way to repair the damage done by the breach is to order the breaching party to follow through.
The most common situation where specific performance is available is in real estate agreements. In these cases, the real estate in question is not interchangeable with another piece of property, especially if the contract also deals with the buildings on the property and not the property alone. If a party promised to turn over a building or a piece of land, a court might order them to follow through.
Sales or transfers of unique items or information may also justify specific performance. If your business was in the process of acquiring specialized equipment or intellectual property, it may be impossible to find a replacement from another seller. A court may not be able to resolve a breach of contract case involving the acquisition of something like a trademark, copyright, or trade secret with monetary damages. Instead, they may order specific performance.
Courts will only order specific performance in cases where the contract is deemed valid. Vague agreements may not have a “meeting of the minds” that supports the claim that a contract existed in the first place. Additionally, the contract must be valid by meeting other requirements, such as requirements under the Statute of Frauds and requirements that the contract involve an exchange of something of value (“consideration”). If the court can invalidate the contract on any of these grounds, it may choose to do that rather than order specific performance.
Courts will also usually avoid ordering specific performance if there is an easier remedy. Courts prefer to order monetary damages whenever possible, especially in commercial contracts. A court can always reject specific performance as a remedy if it is unjust or creates an unreasonable hardship.
Lastly, you may be able to include specific performance as a remedy within the initial terms of your contract. Some contracts provide what the damages will be if the contract is breached, and Maryland law allows you to include specific performance as the remedy if it is an explicit part of the agreement. In these cases, you should be allowed to file a claim for specific performance.
Call Our Baltimore Specific Performance Attorneys Today to Schedule a Legal Consultation
If your business is suffering because of a breach of contract, the best remedy in your case may be specific performance. Call the Heyman Law Firm to discuss your case and learn how our attorneys may be able to represent you and your business in a breach of contract claim. To schedule your legal consultation, call our law offices today at (410) 305-9287.