What is specific performance in real estate?

What is an example of specific performance?

Specific Performance: Overview

When a contract is for the sale of a unique property, for instance, mere money damages may not remedy the purchaser’s situation. Example: Rina offers to buy Beth’s house and Beth accepts, but later decides to keep the property. … Beth would be compelled to go through with the sale.

What is specific performance in simple terms?

Specific performance is an equitable remedy in the law of contract, whereby a court issues an order requiring a party to perform a specific act, such as to complete performance of the contract. … At common law, a claimant’s rights were limited to an award of damages.

Can a buyer sue a seller for specific performance?

Suing for Specific Performance as a Buyer

The buyer is allowed to sue for specific performance if the seller refuses to move forward with her obligations under the agreed upon contract.

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What do you mean by specific performance of contract?

Specific performance means fulfilling a promise made under a contract as agreed. A suit for specific performance can be filed by any party, in a court of competent jurisdiction, who has suffered loss due to non-performance of contract on part of the other party to the contract.

What are the elements of specific performance?

Succinctly, specific performance is available when there exists: 1) a valid and binding contract; 2) definite and certain terms; 3) mutuality of obligation and remedy; 4) freedom from fraud and overreaching; and 5) lack of remedy at law. Shreeve, 65 Ariz.

How do you find specific performance?

What Do I Need to Show to Get Specific Performance Ordered?

  1. A valid and enforceable contract must be produced. …
  2. You must show a breach of the contract occurred by the other party. …
  3. Specific performance requires you to show that monetary damages are inadequate to compensate your claim.

What is specific performance of contract example?

Specific Performance of Contracts

For example, if A agrees to sell certain shares to B of a specific company which are limited in number and after the payment made by B, if A refuses to sell the shares then B is entitled to recovery of those shares.

How do you defend against specific performance?

Mistakes and misrepresentations in the terms of a contract might constitute a defense against specific performance. If such mistakes are sufficient to justify RESCISSION of a contract, they are sufficient to prevent the enforcement of the contract. A court will enforce only a contract with definite and certain terms.

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How do you plead specific performance?

Thus, a complaint for specific performance should allege:

  1. The making of a specifically enforceable type of contract, sufficiently certain in its terms and with legally competent parties;
  2. Adequate mutual consideration;
  3. Just and reasonable contract;
  4. Plaintiff’s performance, tender, or excuse for nonperformance;

What happens when you sue for specific performance?

When a party wins a Specific Performance lawsuit, the court will seek to put the parties in the position they would be in if the contract had been performed pursuant to its terms. This means the court will order the sale of the property at the price and terms agreed upon.

When can specific performance of a contract be enforced?

(1) Except as otherwise provided in this Act, specific performance of a contract shall, be enforced when the act agreed to be done is in the performance wholly or partly of a trust. (2) A contract made by a trustee in excess of his powers or in breach of trust cannot be specifically enforced.

What does specific performance mean in legal terms?

A contractual remedy in which the court orders a party to actually perform its promise as closely as possible, because monetary damages are somehow inadequate to fix the harm.

What is the purpose of Specific Relief Act?

Specific relief to be granted only for enforcing individual civil rights and not for enforcing penal laws. —Specific relief can be granted only for the purpose of enforcing individual civil rights and not for the mere purpose of enforcing a penal law. 5. Recovery of specific immovable property.

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What are the cases in which specific performance of contract is enforceable?

(1) Except as otherwise provided in this Act, specific performance of a [contract shall], be enforced when the act agreed to be done is in the performance wholly or partly of a trust. (2) A contract made by a trustee in excess of his powers or in breach of trust cannot be specifically enforced.