Specific Performance

Definition

Specific performance is a legal remedy in contract law that compels a party to fulfill their contractual obligations, rather than simply paying damages. It is an equitable remedy that allows the court to order the breaching party to perform their promise as originally agreed upon.

5 Must Know Facts For Your Next Test

1. Specific performance is an extraordinary remedy that is only granted when damages are deemed an inadequate remedy for the breach of contract.
2. Courts will typically order specific performance when the subject matter of the contract is unique and cannot be easily replaced or replicated.
3. Specific performance is commonly used in real estate transactions, where the property is considered unique and damages may not adequately compensate the non-breaching party.
4. The decision to grant specific performance is at the discretion of the court and is based on a consideration of the equities involved in the case.
5. Specific performance may be denied if the court finds that the breaching party's performance would be overly burdensome or impossible to fulfill.

Review Questions

• Explain how the remedy of specific performance differs from the award of monetary damages in a breach of contract case.
  • The key difference between specific performance and monetary damages is that specific performance compels the breaching party to fulfill their contractual obligations, while damages only require the payment of money to compensate the non-breaching party. Specific performance is an equitable remedy that is designed to prevent or correct an injustice, whereas damages are a legal remedy that aims to provide monetary compensation. Courts will typically order specific performance when the subject matter of the contract is unique and cannot be easily replaced or replicated, and when damages are deemed an inadequate remedy for the breach.
• Describe the factors that a court considers when determining whether to grant the remedy of specific performance.
  • When deciding whether to grant specific performance, courts will consider several factors, including: (1) the uniqueness of the subject matter of the contract, (2) the adequacy of monetary damages to compensate the non-breaching party, (3) the feasibility and practicality of the breaching party's performance, (4) the balance of equities between the parties, and (5) the public interest. Courts will typically order specific performance when the subject matter of the contract is unique and cannot be easily replaced, and when damages are deemed an inadequate remedy. However, specific performance may be denied if the court finds that the breaching party's performance would be overly burdensome or impossible to fulfill.
• Analyze the role of specific performance in the context of sales contracts, and explain how it differs from its application in other types of contracts.
  • Specific performance is particularly relevant in the context of sales contracts, especially those involving the sale of real estate. Real estate is generally considered a unique asset, and damages may not adequately compensate the non-breaching party if the sale is not completed as agreed. In these cases, courts are more likely to order specific performance to compel the seller to transfer the property to the buyer. However, the application of specific performance may differ in other types of contracts, such as those for the sale of goods or the provision of services. In these cases, courts may be less inclined to order specific performance if the subject matter is not considered unique or if damages can adequately compensate the non-breaching party. The decision to grant specific performance ultimately depends on the specific circumstances of the case and the court's assessment of the equities involved.

Related terms

Damages:

A monetary award granted to the non-breaching party to compensate for the losses suffered due to the breach of contract.

Equitable Remedy: A court-ordered remedy that is designed to prevent or correct an injustice, rather than simply awarding monetary damages.

Breach of Contract: The failure of a party to fulfill their contractual obligations, giving the non-breaching party the right to seek legal remedies.