contracts

specific performance

Specific performance is a court-ordered remedy for breach of contract that requires the breaching party to do what they promised rather than simply pay money. It is common in real estate because each parcel of land is considered unique, so money damages may not fully compensate the buyer. A buyer can sue a seller who refuses to close to force transfer of the deed.

Exam tip: Specific performance is an equitable remedy that buyers typically seek against sellers because land is unique. Contrast it with liquidated damages, which sets a fixed amount in advance.
Example: A seller signs a contract, then refuses to close after getting a higher offer. The buyer sues, and the court orders the seller to deliver the deed at the agreed price.

1. A seller backs out of a valid contract to sell a single-family home because a higher offer arrived. Why is specific performance usually available to the buyer?

Answer & explanation

Answer: D. Courts of equity grant specific performance when money damages are inadequate, and land is treated as unique. It is not the only remedy; the buyer may instead seek damages or rescission. The statute of frauds requires a writing for enforceability but does not dictate the remedy.

Related terms & state variants

breach of contract compensatory damages liquidated damages rescission

Sources

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Last verified: 2026-10-23