Specific Performance Flashcards
What is specific performance?
What are the two types of remedies?
Monetary damages and specific performance
What is monetary damages?
Most common. If seller backs out of a purchase agreement, the buyer could sue for monetary damages. Buyer would seek compensation for all costs they paid like earnest money deposit, and often ask for additional compensation for missed time and opportunity.
What is specific performance?
A court order that requires a party to perform a specific action, usually one stated in the original contract. Usually an equitable remedy.
What is a contract?
A court to order specific performance, there must be a valid and enforceable binding contract.
What is damage inadequate?
A specific performance is only ordered when monetary damages are inadequate to compensate the injured party.
What are mutuality of obligation?
There must be mutuality of obligation, meaning that both parties have undertaken duties toward each other as part of the contract..
What is Judge’s discretion?
When creating a real estate contract, the parties can freely include specific performance as a remedy. But if this provision is not included in the contract, the potential for specific performance is left to the judge’s discretion.
Can a buyer use specific performance?
Yes, if the seller is unwilling to carry out their obligations under the contract. A seller can only do this if they can prove they were ready and able to perform at closing.
Can a seller use specific performance?
Yes, if the buyer decides they do not want to go through with a sale, a seller may also sue for specific performance of the sales contract.
Can real estate brokers sue for specific performance?
No, if there is a breach of contract that negatively impacts them, a broker would sue for monetary damages.
