Specific performance is a remedy that orders a party to do what the contract required instead of merely paying damages.
Why It Matters
This remedy matters because money is not always an adequate substitute for performance. In some disputes, the subject of the contract is unique or difficult to replace, so a court may consider ordering actual performance.
Where It Appears
Specific performance appears in contract litigation when one party seeks equitable relief rather than ordinary damages. It often comes up when the promised performance cannot easily be replicated with a substitute transaction.
Practical Example
A party agrees to transfer a unique asset under a contract, then refuses. The other party may seek specific performance if a simple damages award would not give an equivalent result.
How It Differs From Nearby Terms
Rescission undoes the contract. Damages compensate for the loss caused by nonperformance. Specific performance instead seeks to make the breaching party carry out the promised act.
Related Terms
Knowledge Check
- What makes specific performance different from damages? It seeks actual performance of the contract rather than money compensation alone.
- Why might a court consider specific performance? Because the promised subject matter may be unique or not easily replaced with a substitute.