What is specific performance in contract law?

Specific performance in contract law refers to a legal remedy where a court compels a party to perform their obligations as specified in a contract. This remedy is typically applied in situations where monetary compensation would not provide an adequate remedy for the harm caused by a breach. For instance, in cases involving unique goods, real estate transactions, or special services, the court may determine that the best way to resolve the situation is to require the breaching party to fulfill their contracted duties rather than simply pay damages.

Using specific performance allows the non-breaching party to receive the exact benefit they anticipated from the contract, particularly when the subject matter of the contract is unique and cannot be easily substituted. This contrasts with other remedies where a sum of money might not fully address the loss experienced by the aggrieved party. Consequently, specific performance highlights the importance of fulfilling agreements as they were intended, reinforcing the principle of contract law that parties should honor their commitments.