Who can sue for specific performance? 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.
When can a buyer Sue for specific performance?
The buyer must prove to the judge that he or she performed his or her part of the contract and the seller remains able to continue performing his or her part, as well. The buyer is allowed to sue for specific performance if the seller refuses to move forward with her obligations under the agreed upon contract.
Can I sue a buyer for specific performance?
The remedy of specific performance is also available to sellers in many cases. A buyer may not want to go through with a sale and try to back out. However, some states allow the seller of real property to file a lawsuit against the buyer for specific performance.
What is suing for specific performance?
Specific performance is a specialized remedy used by courts when no other remedy (such as money) will adequately compensate the other party. If a legal remedy will put the injured party in the position he or she would have enjoyed had the contract been fully performed, then the court will use that option instead.
Can a seller sue for specific performance?
While sellers can sue for specific performance against a buyer over a failure to perform on a real estate contract, the remedy is rarely applicable and even more rarely sought. First, most real estate contracts include contract language that addresses the consequences of a buyer breach, and typically provides for loss of the deposit money, or other similar monetary remedies such as liquidated damages.
What is an example of specific performance?
A specific performance example is when a party defaults on its contractual obligation and is ordered by the court to fulfill said obligations. An alternative to the much more common award of monetary damages, specific performance is an injunction on a contract dispute often involving sensitive material or real estate.
What does specific performance mean?
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.
In which circumstances would a buyer most likely sue for specific performance?
In which circumstances would a buyer most likely sue for specific performance? The seller backed out of the original sales contract.
Is specific performance considered damages?
The Basic Law: Specific performance is a disfavored remedy utilized by courts when no other remedy (such as monetary damages) will adequately compensate the party seeking relief.
Who can sue for specific performance?
Specific performance is a remedy developed by principle of equity. A party to a contract who is damaged because the contract is breached by another party has the option to file a suit for specific performance compelling to perform his part of contract.
What does specific performance mean in law?
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. Most commonly ordered in cases involving real property and rare chattels.
When would a suit for specific performance be used?
Specific performance is a specialized remedy used by courts when no other remedy (such as money) will adequately compensate the other party. If a legal remedy will put the injured party in the position he or she would have enjoyed had the contract been fully performed, then the court will use that option instead.
How much time does a seller have to accept a buyers offer if the offer does not have an expiration date quizlet?
Forty-eight hours from the time of the offer is signed.
When a seller is suing for specific performance they want the court to force the buyer to?
Specific Performance asks the court to force the opposing party into a contract that binds them to actually perform the contract at issue, rather than award damages for breach of contract. In real estate litigation, a buyer can force a reluctant seller to live up to the purchase and sale agreement. 2.
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.
When can specific performance not be granted?
Specific performance will not granted where compensation is enough relief. Damages may be considered to be an inadequate remedy. If it is difficult to quantify them. Thus, specific performance may be ordered of a contract to execute a mortgage for money advanced.
Can specific performance replace money?
No. You may choose either damages or specific performance. With specific performance, the court requires the breaching party to fulfill the agreement as promised. If you choose the money equivalent to your entire loss, you may not also seek specific performance.
What is specific performance?
Specific performance is a specialized remedy used by courts when no other remedy (such as money) will adequately compensate the other party. If a legal remedy will put the injured party in the position he or she would have enjoyed had the contract been fully performed, then the court will use that option instead.
Why do courts grant specific performance?
The most common reason courts grant specific performance is that the subject of the contract is unique, when it's not merely a matter of money or where the true amount of damages is unclear. When a contract is for the sale of a unique property, for instance, mere money damages may not remedy the purchaser's situation.
What is agreed counterperformance?
The agreed counterperformance has been substantially performed or its concurrent or future performance is assured or, if the court deems necessary, can be secured to the satisfaction of the court. As you can see, an order for specific performance is largely left up to the discretion of the courts.
What is the power of the court to award specific performance?
Once proven, the court has the power and the discretion to award specific performance ordering the parties to perform and complete the sale. In addition, the buyer may be entitled to an award of money damages for costs and fees, and any other consequential damages, caused by the seller’s failure to perform.
What is specific performance in real estate?
Specific performance is a remedy in contract law that is most often applied in real estate litigation and disputes where a court issues an order requiring a party to perform a specific act, and to specifically perform according to the terms of a contract.
What is the central question in a lawsuit?
A central question is the plaintiff’s own performance, and whether they have in fact breached the agreement and are therefore not entitled to specific performance. Another element of the defense will be the adequacy of the remedy sought and whether or not a simple monetary remedy will suffice.
What happens if an artist backs out of performance?
So, for instance, if a musician or artist backs out of performance, a court will not order them to perform against their will. A court will, however, enforce money damages in favor of the non-breaching party to compensate them for their loss. Let’s take a closer look at specific performance and real estate contracts:
Why are property exchanges considered specific performance?
Certainly, property exchanges may qualify for specific performance because of the unique nature of the property being exchanged and the mutuality of the obligations in the transfer and acquisition of specific real property.
Can proving any one or all of these elements seriously undermine a specific performance case?
Clearly, the defendant’s intent on entering into the real estate contract and the reasons the deal was not completed are critical.
Can a seller sue a buyer?
While sellers can sue for specific performance against a buyer over a failure to perform on a real estate contract, the remedy is rarely applicable and even more rarely sought. First, most real estate contracts include contract language that addresses the consequences of a buyer breach, and typically provides for loss of the deposit money, ...
What is specific performance?
While specific performance is technically the performance of a contractual obligation, it is most commonly referred to in relation to a court order to fulfill such an obligation. Specific performance is a directive ordered by a court wherein a party to a contract must perform a specific action as outlined in an existent contract.
Why was specific performance established?
Specific performance was therefore established so as to guarantee a party the remedy of the right to possession of the land.
What is a buyer's right to specific performance?
A buyer’s right to specific performance or replevin is determined by three main factors. First, specific performance may only be ordered when the goods are unique. Second, an order of a buyer’s right to specific performance or replevin may include terms and conditions that the court feels are just insofar as the payment of damages or other relief.
What happens if the seller refuses to fulfill his end of the contract?
This is true even if the seller refused to fulfill his end of the contract or simply failed to deliver as was promised.
What are some examples of exceptional circumstances?
Some examples of these exceptional circumstances barring specific performance include: Such an order would cause the defendant severe hardship. The underlying contract is found to be unconscionable, or too vague to enforce.
What are some examples of specific goods that have been at the center of cases wherein the courts have ordered specific performance answer
Examples of specific goods that have been at the center of cases wherein the courts have ordered specific performance include works of art, and products that were custom-made specific to the buyer’s request. California has its own circumstances in which specific performance might be ordered. For instance, specific performance is ordered if ...
Is specific performance a remedy?
Insofar as the history of specific performance is concerned, such a remedy was not initially permitted under common law. A litigant’s rights were limited to his being able to collect damages for his loss or suffering. However, the history of specific performance saw the courts of equity realizing that real property made for unique cases. As such, damages were not always adequate insofar as compensation for someone’s loss.
What is specific performance in construction law?
Specific performance in construction law: Breach of contract remedies. Many people enter into contracts with people/companies they believe are the best fit for the job. This certainly is true with construction contracts. When you enter into a contract, each party is agreeing to meet certain obligations. For owners, this means paying ...
Why is specific performance not often used?
First, there are situations where the contract may be impossible to fulfill. This could be due to something like a safety concern, disability, natural disaster, lack of supplies, etc. If the contract cannot be carried out physically or in good faith, ...
What happens when monetary damages are not fully compensated?
If the courts deem that monetary damages do not fully compensate the non-breaching party, they may deem specific performance. When specific performance is deemed necessary, the breaching party has to fulfill their obligations stated in the original contract.
What damages do non-breaching parties seek?
In most circumstances, the non-breaching party seeks monetary damages through a breach of contract action. Generally, these damages include payment to compensate for time, materials, lost revenue, costs, and other resources lost because of the breach of contract.
What is a breach of contract?
When one party does not fulfill their end of the agreement, it is considered a breach of the contract. One remedy to a breach of contract claim is “specific performance.”. Although it is used much less than the other remedies available, it is an important remedy to understand.
What is the last option that would be ordered to remedy a breach of contract?
Overall, specific performance is the “last” option that would be ordered to remedy a breach of contract.
What does it mean when a contractor is in a contract?
For owners, this means paying for the work done. For contractors, this means fulfilling the work that needs to be done. When one party does not fulfill their end of the agreement, ...
What is specific performance?
An alternative to the much more common award of monetary damages, specific performance is an injunction on a contract dispute often involving sensitive material or real estate. The actions ordered are usually identical or materially similar to those obligated within the contract itself.
What is the burden of proof in a contract breach?
In these cases, the burden of proof is on the plaintiff to show he is not made "whole" by monetary damage awards alone. Instead, the court will order the defendant to do what he has promised to do in the contract.
Why did the Giants sue Flowers?
When the Giants tried to sue Flowers for specific performance, since he was a unique asset and had made an agreement, the fact that the professional team tried to get around college league rules meant they did not have clean hands. Therefore specific performance was denied by the court.
What is replevin in commercial law?
Replevin rules apply to specific commercial claims in which real property, and not the monetary value of property, must be transferred in a dispute. In this example, replevin would be ordered instead of a transfer of money if the plaintiff meets the burden of proof.
What happens when a court orders specific performance?
If the court orders specific performance, it orders the seller to convey the property to the buyer in accordance with the terms of their contract. In some situations, the seller may be required to provide a reduction of the purchase price but still otherwise carry out the contract. For example, if the seller agreed to sell a parcel ...
What is specific performance?
Specific performance is a unique remedy that may be available in some cases. It is considered an equitable remedy and is used when traditional monetary damages do not suffice to resolve a legal dispute. One of the traditional areas where this type of remedy is available is in real estate transactions.
Why is specific performance allowed in real estate contracts?
Specific performance is allowed in real estate contracts because each parcel of land is unique and monetary damages are not adequate. The buyer must tender the purchase price in order for specific performance to be granted.
What is specific performance in real estate?
This remedy is known as specific performance. This remedy arises when a court orders the party to fulfill the contract. Specific performance is considered an equitable remedy and is governed by equitable principles. For this type of remedy to be available, several elements must be present, including:
When specific performance is ordered, what is the difference between money damages and money damages?
When specific performance is ordered, money damages are usually not ordered as the moving party is typically not entitled to both types of damages.
Is specific performance an equitable remedy?
Specific performance is considered an equitable remedy and is governed by equitable principles. For this type of remedy to be available, several elements must be present, including:
Is money damages available in all jurisdictions?
However, this remedy is not available in all jurisdictions, such as in areas where the state believes that money damages are adequate to compensate the seller. Additionally, the actual language of the contract can be determinative of whether specific performance will be a possible remedy. If the contract provides for one type ...
Can you get specific enforcement if you have a signed purchase agreement?
Generally if you have a signed purchase agreement you can get specific enforcement if you are willing to close and you performed 100%. Further, with the recent rise in home prices in SE MI I would bet he could get more $ for the house now...
Can you get specific performance on a real estate contract?
As long as all your side of the terms of the contract are met, it is usually not too difficult to get specific performance for the buyer of real estate . Just be certain you have done everything right. In addition, it will not speed things up, as the seller would be entitled to a full trial if he alleges you have not complied with the terms of the contract. It could easily cost a few thousand dollars and I usually would set a...
Can specific performance be granted?
The answer on specific performance will depend on the language of the purchase agreement. If you have complied with all of your requirements under the contract and there are no contingencies that the other party can point to, you will have an argument that specific performance should be granted. Of course, as you noted, you need to think about the cost of proceeding forward if litigation will be required. I...
Definition and Examples of Specific Performance
How Does Specific Performance Work?
- Here’s an overview of the process of specific performance in a civil lawsuit: 1. The process begins when a specific performance clause is written into the contract or when the initial claim is filed with the court. 2. If the court upholds the claim, the judge considers all the issues and determines that specific performance is the best way to make the claimant whole. 3. The judge orders the re…
Specific Performance and State Laws
- Specific performance regulations are part of the Uniform Commercial Code(UCC), a set of laws for commercial and business contracts in the U.S. The Code addresses a buyer’s right to specific performance, stating that: 1. Specific performance may be decreed for unique goods or in other “proper circumstances.” 2. The court may include other terms and conditions for payment of the …
Performance
- The term specific performance refers to literal performance of ones obligations under a contract. Should a party default on his obligation, a court may issue an order for specific performance, requiring a party to perform a particular action. The action is usually one that has been previously detailed in a contract. Specific performance is an alter...
Example
- For example, specific performance is usually ordered in cases wherein an award of damages would not be enough to remedy the situation, such as cases involving the sale of real property. A specific performance remedy is up to the discretion of the court. Therefore, its availability relies heavily upon whether its award is appropriate when considering the facts of the case. For exam…
Significance
- Insofar as the history of specific performance is concerned, such a remedy was not initially permitted under common law. A litigants rights were limited to his being able to collect damages for his loss or suffering. However, the history of specific performance saw the courts of equity realizing that real property made for unique cases. As such, damages were not always adequat…
Definition
- A buyers right to specific performance or replevin is determined by three main factors. First, specific performance may only be ordered when the goods are unique. Second, an order of a buyers right to specific performance or replevin may include terms and conditions that the court feels are just insofar as the payment of damages or other relief. Finally, a buyers right to specifi…
Facts
- An example of specific performance occurred in April 10, 1959, when Harold Weldon, a driller, was in E.C. Joachims store on April 10, 1959 when the two entered into an oral contract to transfer the interest in an oil and gas lease. Weldon alleged that the deal hinged on Weldons securing a drilling contractor to drill a well on the property leased by Joachim. For such services, Weldon alleged th…
Trial
- At trial, the contractor testified that he would not have taken the contract if it hadnt been for Weldons efforts. Upon the completion of the trial in the matter, the court found that the parties had indeed entered into an oral contract, and that Weldon had upheld his part of the contract. As such, the court felt that Weldon was entitled to specific performance and ordered in his favor.
Analysis
- The evidence in the instant action is cogent, clear and forcible as to leave no reasonable doubt that plaintiff and defendant entered into an oral agreement wherein defendant would give plaintiff an interest in the lease if plaintiff would find somebody to drill the lease. That plaintiff fully completed his part of the contract by finding a party who drilled the lease. We therefore conclud…
Impact
- As such, the findings of the trial court were affirmed, in that the Supreme Court of Oklahoma held that Weldon did perform on the oral contract as agreed and further, that the trial court did not err in its decision to enforce specific performance.