Procurement and Contract Management
A specific performance principle is an equitable remedy that compels a party to execute a contract, following the precise terms that have been agreed upon, so that in this, circumstances, justice will be done between the two parties. It grants the plaintiff what he actually bargained for rather than compensation for not receiving it. Complete justice is awarded as the parties are compelled to abide to the contract, other than award damages for a contract breach. The performance is only applied, where monetary damages have been found inadequate. It can only be granted by court, whereby if a defendant refuses to abide by the law, they can be held for criminal contempt, which could lead to imprisonment. The defendant can also be held for civil contempt, if they continue to refuse to obey the order, leads to incarceration until they obey the order.
These are the damages or monetary value awarded to a plaintiff, to compensate for loss or injury incurred on the breach of a contract. It places the defendant on the economic position the contract would have placed them had it been successful. When it is not possible to award the damages in that way, the defendant is awarded to restore their position to the time before the contractual agreement was entered.
This is the amount that has agreed by both parties, which is to be paid to one party, in a case where the other party should breach a contract. However, this amount is not pushed through by law, if the purpose is only to punish the breach of contract. In this case, it is referred to as penal damage, which is found by the court, to be excessive and invalid.
Punitive damages are damages awarded to reform the defendant and others from doing the same action that led to the damage of the plaintiff, on the breach of a contract. They are often awarded where compensatory damages are found to be inadequate. The plaintiff may be awarded some portion or the whole of the award, depending on the level of breach.
A Theory of Efficient Penalty. (2011). Eliminating the Law of Liquidated Damages. Retrieved from http://www.lawnet.lk/docs/articles/international/HTML/BA61.html
World Law Direct. (2012). Specific Performance. Retrieved from www.worldlawdirect.com/article/2542/compensatory-damages.html