Difficulties in performance

Definition

Difficulties in performance refer to the challenges or obstacles that parties may encounter while fulfilling their contractual obligations. These challenges can arise from unforeseen circumstances, changes in conditions, or the actions of third parties, which can hinder a party's ability to perform as agreed. Understanding these difficulties is crucial when evaluating the potential limitations and defenses against specific performance in contractual agreements.

5 Must Know Facts For Your Next Test

1. Difficulties in performance can stem from external factors like natural disasters, economic changes, or legal restrictions that impact a party's ability to meet contract terms.
2. The party experiencing difficulties must typically notify the other party as soon as possible to discuss potential remedies or adjustments to the agreement.
3. In some cases, courts may allow for modifications to the contract if difficulties in performance are proven to be significant and beyond the control of the affected party.
4. Parties may invoke defenses related to difficulties in performance during disputes over specific performance, arguing that enforcing the contract would be unjust under the circumstances.
5. Documenting communications and attempts to resolve issues arising from difficulties in performance can be crucial in court to support a party's claims or defenses.

Review Questions

• How can difficulties in performance affect a party's obligation to fulfill a contract?
  • Difficulties in performance can significantly impact a party's obligation to fulfill a contract by providing grounds for defenses such as impossibility or frustration of purpose. When unforeseen circumstances arise that hinder the ability to perform, the affected party may argue that they should be excused from specific performance requirements. This can lead to negotiations for modifications or settlements instead of strict adherence to the original terms.
• Discuss how courts evaluate claims of difficulties in performance when considering specific performance orders.
  • Courts evaluate claims of difficulties in performance by examining the nature and extent of the challenges faced by the party claiming relief. They look at whether the difficulties were truly unforeseen and beyond control, and if reasonable efforts were made to mitigate these issues. The court also considers if enforcing specific performance would cause undue hardship on the party experiencing difficulties, which can influence their decision on whether to uphold or alter the original contractual obligations.
• Evaluate the implications of invoking force majeure clauses in relation to difficulties in performance and specific performance.
  • Invoking force majeure clauses can have significant implications for addressing difficulties in performance and specific performance. When parties include such clauses in their contracts, they provide a predefined mechanism for dealing with unforeseen events that impede contract fulfillment. This can protect parties from liability and allow for renegotiation of terms without facing enforcement of specific performance. However, it is essential that parties understand how these clauses are defined and applied, as ambiguities may lead to disputes regarding whether certain events qualify for relief under the clause.

Related terms

Impossibility: A legal doctrine that releases a party from their obligation to perform a contract when an unforeseen event makes performance impossible.

Frustration of purpose: A situation where a contract's underlying purpose is thwarted by unforeseen events, rendering the agreement ineffective.

Force majeure: A clause in contracts that frees both parties from liability or obligation when an extraordinary event or circumstance prevents one or both of them from fulfilling their contractual duties.