First Principles of Business Law

Remedies for breach of contract

2. Orders of specific performance

2.3. Performance that requires supervision for an extended period

 

 

 

Read the facts and the question and then choose the best answer.

A Co. is a company of chemical analysts. A Co. enters a contract with B, a city council. The contract requires A Co. to monitor, for a five year period, specified exhaust emissions from all vehicles using a busy road. B agrees to pay A Co. a fee of $10,000 per year, and to provide A Co. with all reasonable support and equipment required for the task. After two years, A Co. says it does not intend to continue with the contract. B wants an order of specific performance of the contract.  He says damages are not an adequate remedy because, if another company takes over, the work will have to be started again from the beginning.

Is an order of specific performance likely to be granted in these circumstances?

(a) Yes, because the work is partly done and if A Co. was not ordered to complete it the work would be wasted.

(b) No, because the court would then have to make sure that proper performance was actually made over a long period of time.

 

 

 

 
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