Specific performance

Definition

Specific performance is a legal remedy that compels a party to fulfill their obligations under a contract when monetary damages are inadequate. This remedy is often sought in cases involving unique items or property, where the standard compensation would not provide the injured party with sufficient relief. Specific performance serves to ensure that contracts are honored, especially in situations where the subject matter of the agreement is rare or irreplaceable.

5 Must Know Facts For Your Next Test

1. Specific performance is more likely to be granted for contracts involving unique goods, real estate, or rare items, where monetary damages would not be adequate.
2. Courts have discretion in granting specific performance, often requiring that the contract be clear, enforceable, and fair to both parties.
3. Specific performance cannot be granted if it requires continuous supervision by the court, such as in personal service contracts.
4. The party seeking specific performance must have fulfilled their own contractual obligations or demonstrate readiness and willingness to perform.
5. Specific performance is not available for contracts that are illegal or impossible to perform due to circumstances beyond control.

Review Questions

• What factors do courts consider when deciding whether to grant specific performance?
  • When determining whether to grant specific performance, courts evaluate several factors, including the uniqueness of the subject matter of the contract, the clarity and enforceability of the contract terms, and whether the party seeking relief has fulfilled their obligations under the agreement. Additionally, courts assess if monetary damages would adequately compensate the injured party and if granting specific performance would cause unfair hardship to the other party.
• In what situations might specific performance be considered a more appropriate remedy than monetary damages?
  • Specific performance is typically more appropriate in cases where the subject of the contract is unique or rare, such as real estate transactions or rare collectibles. For instance, if a buyer has contracted to purchase a one-of-a-kind piece of art, monetary compensation would not suffice since no equivalent item can replace it. Courts prefer specific performance in these cases to ensure that parties adhere to their agreements and that justice is served.
• Evaluate how specific performance interacts with other equitable remedies and when it might be prioritized over them.
  • Specific performance interacts with other equitable remedies like injunctions and rescission by offering a tailored solution for breaches of contract when monetary damages fall short. While injunctions can prevent future harm or compel certain actions, specific performance directly enforces contractual obligations. Courts may prioritize specific performance when dealing with contracts involving unique items or situations where keeping parties to their word aligns closely with principles of fairness and justice. Ultimately, specific performance serves as a crucial tool for ensuring compliance and addressing breaches in circumstances where other remedies may not suffice.

Related terms

equitable remedies: Legal solutions provided by courts that focus on fairness and justice, as opposed to monetary compensation.

injunction: A court order that requires a party to do or refrain from doing a specific action.

breach of contract: The violation of a contractual obligation by failing to perform any term of the contract without a legitimate legal excuse.