Is specific performance common?
Asked by: Prof. Jovan Schmeler IV | Last update: June 29, 2026Score: 4.7/5 (2 votes)
Specific performance is not common as a general remedy for breach of contract, as courts prefer to award monetary damages. It is considered an equitable remedy of last resort, used only when damages are inadequate. However, it is very common in specific areas, most notably real estate disputes.
Is specific performance a common remedy?
Specific performance is a common remedy for a failed purchase and sale of real property.
Is specific performance guaranteed?
Specific performance is not guaranteed
Specific performance is an equitable remedy that is only available when damages, such as monetary compensation, are inadequate. The equitable nature of the remedy gives judges broad discretion to decide whether or not to apply it.
What does it mean when a court awards specific performance?
When a court awards specific performance, it issues an equitable remedy compelling a party to fulfill their exact contractual obligations, rather than simply paying money damages. This is used when the subject matter is unique (e.g., real estate, rare art), making monetary compensation inadequate.
Is specific performance fair?
The party asking for specific performance must have performed, or be ready, willing and able to perform their own obligations. California law bars specific performance for parties who have not fully and fairly performed conditions precedent.
What Does Specific Performance Mean?
How do I sue for specific performance?
The Litigation Process for Specific Performance Claims
If negotiations fail, the next step is filing a complaint in California Superior Court. Plaintiffs often record a lis pendens (a notice that clouds the title of the property) so the seller cannot transfer it to a third party during litigation.
What is the 3-3-3 rule in real estate?
The 3-3-3 rule in real estate is a financial readiness guideline designed to ensure buyers are prepared for the costs of homeownership. It generally recommends having 3 months of emergency savings, 3 months of mortgage payments saved as reserves, and comparing at least 3 properties before making an offer.
What happens if someone doesn't comply with specific performance?
If someone already in breach of a contract refuses to fulfill the requirements established in an order of specific performance, a judge could declare them in contempt of court. There could be numerous other consequences for their continued failure to fulfill their contractual obligations.
When can specific performance be refused?
-Specific performance of a contract cannot be enforced in favour of a person- (a) who would not be entitled to recover compensation for its breach; or (b) who has become incapable of performing, or violates any essential term of, the contract that on his part remains to be performed, or acts in fraud of the contract, ...
What is the most common remedy for a breach of contract?
Compensatory damages are the most frequent remedy for a breach of contract. They are a form of monetary compensation intended to place the non-breaching party in the financial position they would have occupied had the contract been fully performed.
What are the risks of specific performance?
Specific performance also may impose a substantial risk on the seller in comparison to the expectation measure. Under specific performance, the seller is faced with the risk of bearing a cost potentially as high as the loss he would suffer were he to perform.
Is specific performance better than damage?
Money damages are generally preferred in cases where specific performance is not practical or would not adequately remedy the harm caused by the breach.
Are courts reluctant to grant specific performance?
The correct answer is True. Courts do show reluctance in granting specific performance and generally prefer monetary damages as the standard remedy for breach of contract, reserving specific performance for special cases where monetary compensation would be inadequate.
What is an example of specific performance?
So, for example, imagine that there was a contract for the sale of a business. You pay for the business, but the seller never truly legally transfers the business' assets to you. If you sued, and you won, the court could have the authority to order that the business' assets be transferred to you.
What are the 4 types of damages?
Damages include the following types: compensatory, nominal, liquidated, and consequential.
Is specific performance equitable?
A court ordered remedy that requires the breaching party to actually perform on the contract. Specific performance is an equitable remedy where the court orders the breaching party to actually perform on the contract.
What is the burden of proof for specific performance?
The burden of proof lies with the party seeking specific performance to demonstrate the contract's validity and the inadequacy of monetary compensation.
What assets cannot be touched in a lawsuit?
Unless you take steps to protect them, most assets are not protected in a lawsuit. One of the few exceptions to this is your employer-sponsored IRA, 401(k), or another retirement account. At Bratton Estate and Elder Care Attorneys, our lawyers recommend putting an asset protection plan in place before you need it.
How much money is enough to sue?
Small claims court allows you to sue a person, business, or government agency that you think owes you money. Generally, you can only sue for up to $12,500 in small claims court (or up to $6,250 if you're a business). You can ask a lawyer for advice before you go to court, but you can't have one with you in court.
What creates 90% of millionaires?
According to widely cited research and industry experts, approximately 90% of millionaires own real estate, making it the primary investment vehicle contributing to the creation of wealth for most millionaires. Historically, real estate is recognized as a preferred avenue for building long-term wealth, often surpassing other industries.
What decreases property value the most?
Deferred maintenance (roof damage, mold, faulty plumbing), structural issues, and poor location factors—like high noise pollution, proximity to landfills, or high-crime areas—decrease property value the most. Other top value-killers include outdated kitchens/baths, DIY renovations without permits, and messy, unmaintained neighboring properties.
What is Warren Buffett's #1 rule?
Warren Buffett's Rule No. 1: Never Lose Money | Camarda Wealth Advisory Group posted on the topic | LinkedIn.
What are the grounds for refusal of specific performance?
A court may refuse specific performance if it would require constant supervision by the court, or if the loss the defendant would suffer in complying with the order would be far greater than the loss the claimant would suffer from the breach.
What are four types of mistakes that can invalidate a contract?
If signed under error, fraud, intimidation, or duress, the agreement can be challenged.
In which of the following cases might a court award specific performance?
In contract law, if a court determines that damages will not properly compensate the injured party, the court may choose to award specific performance.