Specific performance

Definition

Specific performance is a legal remedy in contract law that compels a party to fulfill their obligations under a contract as agreed. This remedy is typically sought when monetary damages would not adequately compensate the injured party, particularly in cases involving unique items or real estate. Specific performance is often seen as an equitable remedy, as it allows the court to enforce the actual performance of the contractual duties rather than simply awarding damages.

5 Must Know Facts For Your Next Test

1. Specific performance is commonly used in real estate transactions because each property is considered unique, making monetary damages insufficient.
2. Courts may refuse to grant specific performance if the terms of the contract are vague or if the party seeking it has acted unfairly.
3. Specific performance can only be ordered when there is a valid and enforceable contract in place between the parties involved.
4. The remedy of specific performance is generally not available for personal service contracts, as courts do not want to compel individuals to work against their will.
5. When granting specific performance, courts often require the party seeking it to demonstrate that they have acted in good faith and fulfilled their own contractual obligations.

Review Questions

• How does specific performance differ from monetary damages in contract law?
  • Specific performance differs from monetary damages in that it mandates the actual fulfillment of the contract instead of just compensating the injured party with money. This remedy is often used when financial compensation would not suffice, particularly in situations involving unique items such as artwork or real estate. By compelling a party to perform their contractual duties, specific performance addresses the need for justice and fairness in fulfilling agreements.
• In what circumstances might a court deny a request for specific performance?
  • A court might deny a request for specific performance if the contract terms are unclear or if enforcing it would cause undue hardship or inequity. Additionally, if the party seeking specific performance has not complied with their own obligations under the contract or has acted in bad faith, the court may find that they are not entitled to this remedy. Courts also typically do not grant specific performance for contracts involving personal services due to concerns over involuntary servitude.
• Evaluate the role of specific performance as an equitable remedy within the broader context of contract law and its implications for parties involved.
  • Specific performance plays a crucial role as an equitable remedy within contract law by emphasizing fairness and justice over strict legal rules. It underscores the principle that some contractual obligations are so significant that mere monetary compensation fails to capture their value. This approach impacts how parties negotiate and fulfill their contracts, knowing that courts can compel them to perform rather than simply compensate for non-performance. The availability of specific performance encourages parties to engage in good faith negotiations and highlights the importance of clarity in contract terms.

Related terms

equitable remedy: A type of remedy available in court that seeks to provide justice based on fairness, rather than just monetary compensation.

breach of contract: A violation of any terms or conditions of a contract, which can lead to legal consequences, including potential claims for damages or specific performance.

injunction: A court order that directs a party to do or refrain from doing specific acts, often used to prevent further harm in contract disputes.