What is specific performance of contract?
Asked by: Mr. Mac Kuhn DVM | Last update: February 19, 2022Score: 4.6/5 (64 votes)
A contractual remedy in which the court orders a party to actually perform its promise as closely as possible, because monetary damages are somehow inadequate to fix the harm. Most commonly ordered in cases involving real property and rare chattels.
What is meant by specific performance of contract?
Specific performance is an equitable relief granted by the Court to enforce contractual obligations between the parties. It is a remedy in performance as opposed to a claim sounding in damages for breach of contract where pecuniary compensation is granted as relief for failure to carry out the terms of the contract.
What is an example of specific performance?
Specific Performance: Overview
When a contract is for the sale of a unique property, for instance, mere money damages may not remedy the purchaser's situation. Example: Rina offers to buy Beth's house and Beth accepts, but later decides to keep the property. ... Beth would be compelled to go through with the sale.
What is an example of specific performance in law?
A specific performance example is when a party defaults on its contractual obligation and is ordered by the court to fulfill said obligations. An alternative to the much more common award of monetary damages, specific performance is an injunction on a contract dispute often involving sensitive material or real estate.
What is specific performance for breach of contract?
Specific Performance
Specific performance is a type of remedy for breach of contract in which a court orders the breaching party to perform their end of the bargain. Monetary damages are typically favored over specific performance as a remedy for breach of contract.
Specific Performance - What it means for contracts
How do I sue someone for specific performance?
Suing for Specific Performance as a Buyer
In order for a buyer to ask the court for specific performance in a contract, the buyer must tender the purchase price of the unique item or prove that proper financing exists in order to move the court to order specific performance on the part of the seller.
How do you get specific performance?
As a general rule, specific performance will be granted only in cases where there is “mutuality of remedy,” requiring that a remedy must be available to both parties of a transaction in order for either to obtain it.
When can specific performance of a contract be enforced?
(1) Except as otherwise provided in this Act, specific performance of a contract shall, be enforced when the act agreed to be done is in the performance wholly or partly of a trust. (2) A contract made by a trustee in excess of his powers or in breach of trust cannot be specifically enforced.
Is specific performance a right?
Specific performance is an equitable remedy in the law of contract, whereby a court issues an order requiring a party to perform a specific act, such to complete performance of the contract.
What remedies include specific performance?
The equitable remedies are specific performance (an order directing a person to deliver to the buyer the unique thing the seller contracted to sell), injunction (an order directing a person to stop doing that which he should not do), and restitution (the return by one party of the benefit conferred on him when the ...
Is specific performance fair?
General. A Specific Performance Order is an order to perform a contract. As with an Injunction, it is an equitable remedy.
Who can claim specific performance of contract?
The party who has suffered because of the breach of the contract can avail this remedy and under Section 20, where he can substitute the performance through another party and when he does so he cannot claim any other remedy, but the section does not restrict the person to claim compensation from the party who has ...
What is specific performance in equity?
Related Content. An equitable remedy available for breach of contract. A decree by the court to compel a party to perform its contractual obligations. In the High Court, it may be granted in addition to or instead of damages.
What do you mean by specific performance and injunction give some examples?
Specific performance of a contract means enforcement of exact terms of a contract. Under it the plaintiff claims for the specific thing of which he is entitled as per the terms of contract. ... Specific performance is commonly used in the form of injunctive relief concerning confidential information or real property.
Is specific performance a cause of action?
Specific performance is an alternative equitable remedy to a cause of action for breach of contract. ... The equitable remedy sought in an action for specific performance is a court order requiring the defendant to perform the action he or she promised to perform.
What are the limitations of using specific performance?
Specific performance is impossible. The contract is too vague to be enforced. The contract was terminable at will (meaning either party can renege without notice). The contract required constant supervision.
Can you claim damages and specific performance?
specific performance of any covenant, contract or agreement it shall be lawful for the same Court if it shall think fit to award damages to the party injured either in addition to or in substitution for such specific performance & such damages may be assessed as the Court shall direct."
What are specific contracts?
Contracts which have certain specific features are known as specific contract. These types of contracts are distinct from other contracts. The Indian Contract Act, 1872 contains certain specific contracts such as bailment, pledge, indemnity, guarantee, agency etc.
Who won Lucy vs zehmer?
Conclusion: There was a binding contract for the sale of land. On appeal, the court reversed and remanded. The sellers' true intent in agreeing to sell their farm was not determinative so long as their words and actions warranted a reasonable person's belief that a contract was intended.
Can buyer sue seller for backing out?
Can a seller cancel a property deal? If a seller backs off from a property deal, the buyer can file a suit for specific performance in the courts of law.
Can a buyer enforce specific performance?
If a party to a property agreement fails to comply with its obligations, the other party may wish to apply for an order for specific performance. There is a general principle that a contract for the grant of an interest in land will normally be specifically enforced. ...
In which circumstances would a buyer most likely sue for specific performance?
In which circumstances would a buyer most likely sue for specific performance? The seller backed out of the original sales contract.
When a suit for specific performance can be filed and what relief can be claimed in such case?
As per THE SPECIFIC RELIEF ACT, 1963 a plaintiff can claim compensation in addition to, or in substitution of a relief for specific performance in a suit for specific performance of a contract. It means as per old Act, compensation can be claimed as an alternative relief for specific performance.
What is specific performance under what circumstances will the court not order it?
If there is a condition precedent/subsequent to the obligation in question, then specific performance cannot be granted until this condition is satisfied. The court will not order performance where it would be futile or impossible to do so (e.g. forcing a party to sell something which the party does not own).
What is the difference between specific performance and injunctions?
Specific performance can be understood as being the opposite of an injunction. It seeks to fulfil the contract and put the parties in the position they would have been in had the contract been properly executed, thereby ensuring the most equitable resolution to a contractual issue.