What kind of damages can result in a contractor not being awarded Specific Performance?

Study for the PEO PPE Exam. Use multiple choice questions with hints and explanations. Prepare thoroughly for your exam!

Specific performance is an equitable remedy that compels a party to execute a contract according to its precise terms. The remedy is typically invoked when monetary damages are not sufficient to remedy the harm caused by a breach of contract. In this context, minor deficiencies in contract performance refer to situations where the contract has not been breached to a significant degree; minor issues typically do not justify a court's intervention to enforce specific performance.

When minor deficiencies exist, it indicates that the essential elements of the contract have largely been fulfilled, thus reducing the perceived need for specific performance. Courts often prefer to award damages instead of compelling performance when the breach is minor, as it allows the parties to resolve issues without the burden of forcing compliance in situations where the contract has been mostly satisfied. In such cases, awarding monetary compensation would typically be deemed adequate to cover any inconvenience or minor loss suffered by the aggrieved party.

The other scenarios, such as substantial damages to third parties, insufficient financial compensation, or verbal agreements superseding written ones, involve complexities that can impact the enforceability of contracts in a different manner and may not directly correlate with the threshold determination of whether minor deficiencies bar the use of specific performance.

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