First, in performance contracting there is a mutual agreement to improve performance through a project or goals to be achieved.
The objectives are made fast and smart at the same time.
Where FAST is an acronym for Frequently discussed objectives, Ambitious Specific and Transparent. On the other hand, SMART refers to Specific, Measurable, Achievable, Realistic and Timely.
The importance of performance contract gives a clear way to both parties which is also conditional.
If you deliver, you are likely to be rehired and compensated for and the opposite is true. If you don’t deliver, the repercussion is also indicated in the agreement.
It ensures that both parties get what they are contracted for, rather than a monetary substitute that may not reflect the true value or importance of the contract.
Specific performance also preserves the integrity and enforceability of contracts, as it signals to the parties and the public that contracts are binding and must be honoured.
Furthermore, specific performance may deter future breaches, as it imposes a high cost and inconvenience on the breaching party.
The main disadvantage of specific performance is that it may be impractical or impossible to enforce.
It may be difficult to monitor or supervise the performance of the contract, especially if it involves ongoing or complex obligations.
It may also be unfair or harsh to compel the breaching party to perform against their will, especially if their circ*mstances have changed or if they have a valid reason for not performing.
Additionally, specific performance may be inefficient or wasteful, as it may prevent the breaching party from allocating their resources to more productive or profitable uses.
Moreover, specific performance may be costly and time-consuming to obtain, as it may involve lengthy litigation and appeals.
The Writer is Radio Africa's Group HR Manager
