Specific performance

Definition

Specific performance is a legal remedy in contract law that requires a party to fulfill their obligations under a contract, particularly when monetary damages would not be adequate to compensate the other party. This remedy is often sought in cases involving unique items, such as real estate or rare goods, where simply paying for the loss does not suffice. Specific performance serves to enforce the contract as agreed, ensuring that the non-breaching party receives exactly what was promised.

5 Must Know Facts For Your Next Test

1. Specific performance is more commonly granted in cases involving real estate because each piece of property is considered unique.
2. The court usually will not order specific performance if the contract involves personal services, as this may lead to involuntary servitude.
3. Before granting specific performance, the court must determine if the contract is valid and if it is possible for the defendant to fulfill their obligations.
4. In some cases, courts may also impose conditions on specific performance, requiring the fulfilling party to meet certain standards or timelines.
5. Specific performance can be denied if it would create an unfair burden on the breaching party or if the requesting party has acted in bad faith.

Review Questions

• How does specific performance differ from monetary damages in terms of enforcing contractual obligations?
  • Specific performance differs from monetary damages as it mandates the actual fulfillment of the contract rather than just providing financial compensation for a breach. This type of remedy is often used when the subject of the contract is unique or irreplaceable, such as real estate. Monetary damages may not effectively remedy the loss in such cases, which is why courts might opt for specific performance to ensure that the non-breaching party receives exactly what was originally agreed upon.
• Evaluate situations where a court might choose to grant specific performance over other remedies like monetary damages.
  • A court may choose to grant specific performance in cases where the item involved is unique and has significant value beyond mere monetary terms. For instance, if a buyer enters into a contract for a one-of-a-kind artwork or a specific piece of land that cannot be easily replicated, monetary damages would not suffice to make up for the loss. The court also considers whether the contract is valid and whether enforcing it would create an undue burden on the breaching party.
• Synthesize the principles behind specific performance and how they reflect broader themes in contract law regarding fairness and fulfillment.
  • The principles behind specific performance reflect broader themes in contract law that emphasize fairness and the intention of parties to honor their agreements. By enforcing contracts through specific performance, courts reinforce the idea that agreements should be taken seriously and fulfilled as intended. This remedy highlights the importance of reliability in transactions and acknowledges that not all losses can be measured or compensated through money, thereby promoting trust and accountability in contractual relationships.

Related terms

Breach of contract: A failure to perform any term of a contract without a legitimate legal excuse.

Equitable remedies: Legal remedies that seek to provide fair solutions, typically when monetary damages are insufficient.

Damages: Monetary compensation awarded to a party as a result of loss or injury due to another party's breach of contract.