In which type of contract would a court typically award specific performance as a remedy?

Study for the CLEP Business Law Test. Engage with flashcards and multiple choice questions, each question has hints and explanations. Prepare effectively for your exam!

Specific performance is a legal remedy where a court orders a party to perform their obligations under a contract, rather than simply awarding monetary damages. This type of remedy is particularly appropriate in situations where the subject matter of the contract is unique or where monetary damages would not adequately compensate the injured party.

In the case of a contract for the sale of land, real estate is considered unique due to its intrinsic characteristics and location. If one party fails to perform their end of the bargain, the other party cannot easily find a substitute piece of land that fulfills their original intentions or needs. Therefore, courts are inclined to award specific performance in such cases, compelling the seller to complete the sale.

In contrast, contracts for off-the-shelf goods or contracts for personal services generally do not warrant specific performance, as these typically involve items or services that can easily be replaced with monetary damages. Similarly, contracts for the sale of goods where adequate monetary damages are available do not meet the criteria for specific performance, as the remedy of money is sufficient to cover any loss. Thus, the sale of land stands out as the situation where specific performance is most commonly applied.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy