What is Specific Performance?
Specific performance is an equitable remedy that occurs when a court forces a party who is in breach of a contract to perform the contract as stated. Specific performance is meant to place the parties as close as possible to the position they would have been in if the contract had been performed. Specific performance is also rare, as it is only used when something is unique or special enough that Benefit-of-the-Bargain damages wouldn’t make the non-breaching party whole. Specific performance is most often used in entertainment contracts or real estate contracts. It is also important to note that, as specific performance is an equitable remedy, a party seeking such relief is not entitled to a jury trial.
Case Examples
- Bankruptcy: A trustee in a bankruptcy can enforce the same rights as the debtor would have had originally, especially if the debtor had already fulfilled their obligations under the contract for the sale of property. See In re Vandenbosch, 405 B.R. 253, 256 (Bankr. W.D. Mich. 2009). The Court also noted that “specific performance is an equitable remedy, the purpose of which is to put the parties “as nearly as possible in the position that they would have occupied had the conveyance of the real property occurred when required by the contract.” Id .
- Damages: A court may award monetary damages in addition to ordering specific performance if the damages are necessary to make a party whole. See Darretta v. Windsor Props., 183 F. App'x 928, 929 (11th Cir. 2006).
- Specific performance cannot be used if legal (financial) remedies can make the plaintiff whole. See Am. Bancshares Mortg. Co. v. Empire Home Loans, Inc., 568 F.2d 1124 (5th Cir. 1978). In that case, the plaintiff sued the defendant for breach of contract in the sale of a home. However, the appeals court found that specific performance had been improperly granted, as the plaintiff could have sought foreclosure action as their remedy. Id .
Further Reading
For more detailed information, see our related Contracts terms:
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