Limitations on Specific Performance for Breach of Contract
TITLE
The law is unwilling to allow the remedy of specific performance to be used for all breaches of contract. Describe the nature of this remedy. Assess the validity of the statement above.
ESSAY
Title: The Use of Specific Performance as a Remedy in Breach of Contract: A Critical Analysis
Introduction
Specific performance is a remedy available in contract law that involves the court ordering a party to perform their contractual obligations as specified in the agreement. This remedy is discretionary in nature and has its origins in equity. While damages are the primary remedy in contract law, specific performance may be granted in cases where damages are deemed inadequate, particularly in situations involving goods of a unique nature, the sale of land, or obligations to pay money to a third party.
Discretionary Nature of Specific Performance
Specific performance is a discretionary remedy, granted by the court based on the circumstances of each case. Courts have the discretion to award or refuse specific performance depending on factors such as fairness, undue delay in seeking the remedy, and the nature of the contract. The courts will not enforce specific performance in cases where the contract is deemed unfair or would cause undue hardship to the breaching party.
Limits on the Use of Specific Performance
Certain contracts are deemed unsuitable for the grant of specific performance, including those lacking mutuality, personal service contracts, and contracts requiring constant supervision. Specific performance is not available against minors, as seen in Flight v Bolland, and is generally not enforced in personal service contracts due to concerns about infringing personal freedom. Contracts requiring constant supervision may also be unsuitable for specific performance unless the court is not required to supervise for proper enforcement.
Validity of the Statement
The statement that the law is unwilling to allow the remedy of specific performance to be used for all breaches of contract is valid. Specific performance is a discretionary remedy that is granted in limited circumstances where damages are deemed inadequate. The courts carefully consider the nature of the contract, the fairness of enforcing specific performance, and the potential hardship on the breaching party before granting this remedy.
Conclusion
In conclusion, specific performance is a valuable remedy in breach of contract cases, but its use is limited and discretionary. While specific performance may be granted in certain situations where damages are inadequate, the courts are careful to ensure that the remedy is fair and appropriate given the circumstances of each case. The law recognizes the importance of balancing the interests of both parties and will only grant specific performance when it is deemed just and equitable to do so.
SUBJECT
LAW
PAPER
A level and AS level
NOTES
The law is unwilling to allow the remedy of specific performance to be used for all breaches of contract.
Describe the nature of this remedy. Assess the validity of the statement above.
Candidates should begin by defining specific performance, Expalining its discretionary nature and origins in equity. For historical reasons, damages is the primary remedy in contract law and candidates should suggest why – most contracts are to supply goods or services which are readily obtainable in the available market should there be a breach (Cohen v Roche). It follows that if damages are inadequate specific performance will be granted. Still quite a rare occurrence limited to goods of a unique nature (Behnke v Bede Shipping Co Ltd), Sale of land (Adderley v Dixon) or an obligation to pay money to a third party (Beswick v Beswick).
Candidates should Expalin the limits imposed on its use as it is guided by the notion of fairness. For example, courts will not allow specific performance to be used to enforce an unfair contract (Walters v Morgan) or cause the defendant hardship (Patel v Ali). Undue delay in seeking the remedy may also prevent its use although what is unreasonable delay will depend on the subject matter of the contract (Lazard Brothers & co Ltd v Fairfield properties (Mayfair) Ltd).
Specific performance is only awarded at the discretion of the court (Wood v Scarth, Webster v Cecil). The law deems certain contracts unsuitable for the award of specific performance and candidates should Expalin these.
Namely:
💥 Those lacking mutuality (where the order is not available to both parties) e.g. never available against a minor (Flight v Bolland).
💥 Personal service contracts especially regarding employment. Seen as infringing personal freedom to make someone work for an employer they don’t wish to (statutory bar provided by s.236 Labour Relations (Consolidation) Act 1992) although there is some flexibility re compelling an employer to reinstate an employee (Hill v CA Parsons Ltd).
💥 Contracts requiring constant supervision (Ryan v Mutual Tontine Association, Co💥op Insurance Society Limited v Argyll Stores (Holdings) Ltd) but possible where the courts are not required to constantly supervise for the contract’s proper enforcement (Posner v Scott Lewis).
Accept any other relevant case cited and any other valid line of reasoning.