Specific performance is a court-ordered remedy that requires a party to carry out a contractual promise. This lesson explains how it differs from damages, when it may be appropriate, and why courts may refuse it.
At common law, a claimant’s remedy for breach was generally an award of damages—money intended to compensate for the loss. Courts of equity later developed specific performance, an order requiring the party in breach to perform the promised act, when money would not adequately address the problem.
All flashcards
What is specific performance?
An equitable court order requiring a party to perform a specific contractual obligation, rather than merely pay compensation.
Why is specific performance described as discretionary?
The court does not grant it automatically. It assesses whether the remedy is appropriate in the circumstances, including whether damages are adequate and whether any reason for refusal applies.
What makes damages potentially inadequate?
Damages may be inadequate when the loss cannot be assessed accurately or when money cannot secure a suitable substitute for the promised subject matter.
Why is land a classic subject for specific performance?
Each parcel has distinctive characteristics, especially its location, and another parcel may not provide an equivalent substitute.
What does the equitable doctrine of unclean hands concern?
It concerns improper conduct by the claimant. A claimant’s misconduct related to the matter may lead a court to refuse equitable relief.
Quiz questions
What does an order for specific performance require?Answer: It directs a party to perform a specified contractual obligation.
Why is specific performance commonly considered in disputes over the sale of land?Answer: Another parcel may not be an adequate substitute for the land promised.
Why is specific performance generally unavailable for freely traded public shares?Answer: Equivalent shares can usually be purchased on the public market.
Which circumstance may lead a court to refuse specific performance, even if damages are inadequate?Answer: The order would require constant supervision by the court.
Why are courts generally reluctant to order a person to perform personal services?Answer: Compelled work may not meet the person’s usual standard, and supervision may be inappropriate.