Specific performance

Lore & Background

At common law, a claimant's rights were limited to damages. Later, courts of equity developed specific performance as a remedy when damages proved inadequate. Specific performance is often guaranteed through a right of possession, giving the plaintiff the right to take possession of the disputed property. As with all equitable remedies, orders are discretionary and depend on appropriateness in the circumstances, such as when land is regarded as unique.

Reader's Guide

Specific performance is significant because it provides a remedy beyond monetary damages, compelling actual performance of a contract. It is most often used in land transactions, where land is considered unique. However, courts will not grant it in many circumstances, such as when damages are adequate, the contract is too vague, or performance requires personal service. There is ongoing debate about its desirability, with economists favoring damages for efficiency, while others argue specific performance better reflects the promise made.

Did You Know?

• Specific performance is almost never available for contracts of personal service.
• In the United States, Article 2 of the Uniform Commercial Code allows specific performance where goods are unique or in other proper circumstances.
• In civil law systems, specific performance is considered the basic right, with money damages as a substitute.
• The leading case Lumley v Wagner involved an injunction to restrain an employee from working for a rival, though specific performance could not be obtained.