For example, if a plaintiff is purchasing a two-bedroom condo in a large project, the defendant breaches, but other identical condos are available, the court may conclude that monetary damages are sufficient, even though real property is at issue. Even in those situations in which specific performance may be allowed, the court has discretion not to grant it. Note that an order for specific performance is largely left up to the discretion of the courts. The agreed performance by the plaintiff has been substantially performed or its concurrent or future performance is assured or, if the court deems necessary, can be secured to the satisfaction of the court.Specific performance would otherwise be an appropriate remedy and.Most states have adopted the Uniform Commercial Code (UCC), which addresses specific performance criteria, including California.Ĭalifornia law states that specific performance may be compelled if: Commodities that courts have found to support specific performance include works of art, custom-made products, and goods in extremely short supply. Since monetary damages are awarded whenever possible, it is also vital for the plaintiff to demonstrate that the unique nature of the asset at issue requires specific performance and that monetary damages would not suffice. When a contract is for the sale of a unique property, for instance, mere money damages may not remedy the purchaser's situation.Ĭourts will enforce specific performance only if the underlying contract was “fair and equitable.” It is up to the plaintiff to demonstrate that the contract was an appropriate one, legal, with each party receiving fair consideration for performance. If a monetary (commonly called “legal remedy”) will not put the injured party in the position he or she would have enjoyed had the contract been fully performed, then the court will use an order requiring action by the defendant, instead (commonly called “equitable remedy.”) The most common reason courts grant specific performance is that the subject of the contract is unique and adequate just relief requires more than a transfer of money and/ or where the true amount of damages is unclear. Specific performance is a disfavored remedy utilized by courts when no other remedy (such as monetary damages) will adequately compensate the party seeking relief. This is called specific performance and this article discusses the basic law that applies. Thus, a singer X can be compelled to attend a concert and perform, or the seller of real estate can be compelled to transfer title. In certain circumstances, courts can order defendants in contract disputes to actually perform the contractual duties as originally agreed if it is determined that money alone cannot resolve the issue. The classic examples are sales of real property since each parcel is considered unique and performance of a concert by an artist of unique talent. There are times, however, when the courts will grant orders requiring a party to perform some act or transfer some asset rather than grant monetary damages and those times are usually related to circumstances in which monetary relief would not afford the plaintiff an adequate remedy. Indeed, there is overwhelming authority that the courts are only to grant monetary damages except in unique and specified circumstances. The courts of the United States normally grant only monetary damages to a claimant in litigation.
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