What does the remedy of specific performance require in a real estate contract dispute?
Correct Answer
B) The court orders the breaching party to complete the terms of the contract
Specific performance is an equitable remedy in which a court orders the breaching party to fulfill the specific terms of the contract rather than simply paying monetary damages. It is commonly sought in real estate disputes because each parcel of land is considered unique, making monetary damages potentially inadequate to compensate the non-breaching party. Either a buyer or a seller may seek specific performance depending on who breached the contract.
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Related Topics & Key Terms
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Related Concepts
An assignment of contract transfers one party's rights and obligations under a contract to a third party called the assignee. The original party, known as the assignor, transfers their contractual position to someone who was not originally part of the agreement.
A bilateral contract is an agreement in which both parties exchange promises and are both obligated to perform, while a unilateral contract is one in which only one party makes a promise and the other party is not obligated to act.
A breach of contract occurs when one party fails to perform their obligations under the contract without a legal excuse. The non-breaching party is entitled to legal remedies including damages, specific performance, or contract rescission.
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