Specific Performance-A Powerful Legal Action

What is Specific Performance?

Specific Performance is a powerful legal action that forces someone to follow through on a written or spoken agreement. It’s like a way to make sure someone keeps their promises. Unlike a claim for money, Specific Performance doesn’t just give you money. It wants the person who broke the agreement to actually do what they said they would do. In other words, Specific Performance is like a way to get the benefits of the agreement without having to pay for them. A court order for Specific Performance is like a rule that says someone has to follow through on their contract. It’s usually used when a court can only give someone money for not doing something, and that money isn’t enough.

Discretion of Court

Generally, under Florida law, specific performance is not a matter of inherent right. While in an action for specific performance, the contract in question may be one of a class where specific performance is possible due to the inadequacy of the remedy at law, the enforcement of the agreement in equity is not guaranteed as an absolute right. Specific performance is not granted as a matter of favor or grace but as a sound judicial discretion. The exercise of this discretion is governed by careful consideration of all the facts and circumstances of the case, as well as the application of well-established legal and equitable principles.

Even when the terms of the contract are clear and unambiguous, the judge must consider all pertinent factors when exercising discretion regarding granting or denying specific performance. Relief will either be granted or withheld based on the equities of the situation, which can only be determined through a just consideration of all the facts and circumstances. No single rule can be applied universally to determine the judge’s decision in all cases. The court is obligated to assess whether the remedy based on the specific facts of the case would result in an unfair or unjust outcome.

A binding contract must exist to obtain specific performance

The equitable remedy of specific performance is applicable only to a valid and enforceable contract. However, it may be denied when a contract is unenforceable due to ambiguity, preventing the parties from reaching a mutual understanding regarding an essential term of the agreement. While establishing the existence and validity of the contract is crucial for specific performance, its existence alone is not sufficient. A valid contract at law and binding on the party seeking enforcement is essential. If there is no obligation to perform, specific performance will not be granted. Therefore, any doubt about the contract’s existence must be resolved before specific performance can be decreed. 

Public policy must support a claim specific performance

Equity won’t lend a helping hand to secure specific performance of a contract that violates the law or is void due to illegality. Consequently, courts won’t specifically enforce contracts that are legally invalid. However, in cases of specific performance, courts assume that the contract in question isn’t illegal, that there’s no legal defense against it, and that there aren’t any features or incidents that would lead a court of equity to invalidate or cancel it. One can’t seek the aid of a court of equity to enforce a contract unless it aligns with public policy for the court to do so, even if a valuable consideration has been exchanged between the parties. Alternatively, a court of equity won’t order specific performance unless the contract isn’t against public policy. On the other hand, if a contract isn’t in violation of either law or public policy, the agreement will be ordered by the court to be specifically performed if it’s otherwise enforceable. Similarly, specific performance is granted only when it’s equitable to do so, and only when the contract to be enforced is fair, equitable, reasonable, and just. It must also have been entered into fairly and understandingly. Equity won’t require specific performance of a contract obtained through fraud. If a contract is to be enforced, it must be free from fraud.

What effect does the Statute of Frauds have on specific performance?

Specific performance of an alleged contract is barred when it fails to comply with the requirements of the Statute of Frauds. Consequently, where a contract is subject to the Statute of Frauds’ requirement for writing, equity will not, in the face of an objection to the oral nature of the agreement, order specific performance thereof. For instance, to enforce an enforceable contract for the purchase and sale of real property, the Statute of Frauds mandates that the contract be in writing and signed by the party against whom enforcement is sought.

Specific Performance and real property contracts

Specific performance of a contract isn’t a guaranteed right for either party. It’s a court decision that depends on the circumstances of the case. This is especially important when it comes to contracts that involve real estate. The court will consider all the details of the case, including the nature and uses of the property. Unless there’s a clear mistake in the court’s decision, it won’t be overturned on appeal.

A court can award damages in lieu of specific performance

Once a court has acquired jurisdiction over a suit for specific performance, it will thoroughly adjudicate all relevant matters and issues in the case. In certain cases, damages may be granted instead of specific performance. These cases arise when the court perceives sufficient equities to exercise its jurisdiction. For instance, a court may allow monetary damages in lieu of a specific enforcement decree of a contract when, due to no fault of the plaintiff, specific performance is impossible. Alternatively, if the court cannot grant specific performance because the defendant’s performance has become impossible or because enforcing the decree is impractical or impossible, it retains jurisdiction and awards damages to the plaintiff, even if the plaintiff has adequate legal remedies. When a purchaser seeks specific performance for property and it’s not granted, the court can determine a breach of contract by the seller and award damages to the purchaser, though this is not mandatory. If the court finds it impossible to grant equitable relief because the property involved in the specific performance action has been sold, the trial court can conduct an evidentiary hearing to ascertain and award incidental damages. Where specific performance of a contract is denied, and damages are awarded instead, the appropriate measure of damages is the same as what would be awarded in an independent action to recover for breach of the contract. 

Florida Specific Performance Attorney

Specific performance claims often involve failed real estate transactions and are usually significant in value.  In addition to the above criteria, there are numerous additional factors and points of law that one should consider when deciding whether to file a claim for specific performance or when formulating a valid defense to such a claim.  Call Florida specific performance lawyer Andrew J. Pascale today at 877-667-1211.