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12.1 Requirements for Specific Performance

3 min readjuly 22, 2024

is a powerful in contract law, used when monetary damages just won't cut it. It's reserved for unique situations like real estate deals or rare item sales, where the contract's subject matter is irreplaceable.

Courts grant specific performance when regular damages can't make things right. It's all about enforcing the exact terms of the deal, but only if those terms are crystal clear and the person asking for it has mostly held up their end of the bargain.

Requirements for Specific Performance

Situations for specific performance

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  • Unique goods or property involved in the contract
    • (land, houses) due to each property being unique and irreplaceable
    • Rare or one-of-a-kind items (artwork, antiques) that cannot be easily substituted
    • Goods with sentimental value (family heirlooms) that hold special meaning to the buyer
  • Personal services contracts that require unique skills or abilities
    • Employment agreements with highly skilled individuals (athletes, performers) whose services are not readily replaceable
    • Contracts for specialized services (custom software development) tailored to the buyer's needs
  • Situations where damages are difficult to calculate or prove inadequate compensation
    • Contracts involving intellectual property rights (patents, trademarks) where the value is hard to quantify
    • Agreements to sell a business where goodwill and customer relationships are key assets

Inadequacy of damages requirement

  • Monetary damages alone must be insufficient to fully compensate the non-breaching party
    • Difficulty in determining the fair market value of unique goods or services
    • Inability to obtain a suitable substitute in the market due to the subject matter's uniqueness
  • Specific performance is an granted at the court's discretion when legal remedies (damages) are deemed inadequate
    • Used in situations where money cannot make the non-breaching party whole
    • Aims to enforce the contract and provide the benefit of the bargain to the aggrieved party
  • The uniqueness of the subject matter often renders damages an inadequate remedy
    • Monetary compensation may not account for subjective value or sentimental attachment
    • Difficulty in quantifying the loss or inconvenience caused by the breach

Definite terms for specific performance

  • Contract terms must be clear, complete, and unambiguous for specific performance to be ordered
    • Essential terms such as parties, subject matter, price, and performance obligations must be included
    • Vague or incomplete terms may preclude specific performance due to uncertainty
  • Courts must be able to determine the parties' obligations without supplying missing terms
    • Specific performance requires the court to enforce the contract as written
    • Courts cannot rewrite or modify the agreement to make it enforceable
  • Uncertainty in contract terms makes through specific performance difficult
    • Ambiguous language or missing details may render the contract too indefinite for specific performance
    • Courts may refuse to grant specific performance if the terms are not sufficiently clear and definite

Plaintiff's substantial performance obligation

  • The plaintiff seeking specific performance must have substantially fulfilled their contractual duties
    • Substantial performance means the plaintiff has completed most of their obligations with only minor deviations
    • The plaintiff must demonstrate a willingness and ability to complete any remaining performance
  • Specific performance is an equitable remedy, and the plaintiff must come to court with "clean hands"
    • The plaintiff's own breach or non-performance of material obligations may bar specific performance
    • The court may deny the remedy if the plaintiff has acted unfairly or in bad faith
  • Courts may require the plaintiff to complete their performance or tender payment before granting specific performance
    • The plaintiff must show readiness to perform their remaining duties under the contract
    • Failure to do so may result in the court denying specific performance as a remedy
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© 2024 Fiveable Inc. All rights reserved.
AP® and SAT® are trademarks registered by the College Board, which is not affiliated with, and does not endorse this website.

© 2024 Fiveable Inc. All rights reserved.
AP® and SAT® are trademarks registered by the College Board, which is not affiliated with, and does not endorse this website.
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