What is specific performance in contract law?

Specific performance is a legal remedy used in contract law where a court orders a party to fulfill their contractual obligations as agreed. This remedy is particularly applicable in cases where monetary damages would not adequately compensate the non-breaching party. For example, in contracts involving unique items such as real estate or rare collectibles, the courts recognize that simply providing money would not substitute the actual performance of the contract. Therefore, a court can require the party in breach to complete the terms of the contract, thereby ensuring that the other party receives the specific benefit they contracted for.

This remedy differs significantly from monetary compensation, which just addresses damages incurred from a breach, and injunctions, which are orders to refrain from doing something rather than compelling specific actions. Further, specific performance is not related to emotional damages; it strictly pertains to fulfilling contractual terms, reinforcing the obligation to perform rather than compensating for personal feelings or emotional impacts. This makes specific performance a powerful tool in upholding contractual agreements when tangible outcomes are at stake.