The terms that businesses set when negotiating a contract clarify what obligations parties have to each other. A business contract might outline the duration of an employment agreement and the amount of someone’s compensation. It might clarify how frequently vendors must make supply deliveries and the pricing schedule for the materials they deliver.
Contracts can include restrictive covenants that prevent the disclosure of private information or unethical competition. They can include penalties for the failure to perform contractual obligations and clear specifications for what each company expects from the other.
There is typically an expectation that those who are subject to a contract should uphold it to the best of their ability. Unfortunately, some professionals and organizations violate contractual agreements. Leadership within an organization frustrated by contract violations can potentially turn to the civil courts to enforce a contract.
How can the civil court help?
Judges have the authority to issue orders that can help resolve contract conflicts. Often, contracts include terms and impose fees for breaches or late payments. Contract litigation can be a way to ensure that the party that breached the contract pays those fees. A judge can hold the party in breach of the contract responsible for any financial losses the other party incurred by awarding the plaintiff damages.
However, if the goal of litigation is to compel one party to follow through with the contract, then the plaintiff may need to request an order of specific performance. If a judge determines that specific performance is appropriate, they can order one party to fulfill their contractual obligations or certain specific terms in consideration of the original contract and the alleged breach.
An order of specific performance could mandate the delivery of materials or might make it necessary for a company to redo work that did not meet contractual specifications. A judge can potentially enforce a contract by issuing a court order, which means that a failure to follow through on making payments or complying with the order of specific performance could be contempt of court.
Turning to the courts to enforce a contract is a reasonable move when one party has demonstrated an unwillingness to voluntarily fulfill agreed-upon contractual obligations. Exploring the possible solutions available in civil court can potentially benefit those frustrated by costly contract breaches accordingly.