What does specific performance in contract law entail?

Specific performance in contract law refers to a legal remedy whereby a court orders a party to fulfill their obligations as stipulated in a contract, rather than simply providing monetary compensation for any loss incurred due to a breach. This remedy is particularly applicable in situations where the subject matter of the contract is unique or where damages would not adequately compensate the non-breaching party, such as in the sale of rare items or real estate.

When a court grants specific performance, it compels the breaching party to perform their contractual duties. It is a form of equitable relief that emphasizes the importance of honoring agreements and preserving the contractual relationship, rather than severing it through damages or other remedies. This makes the remedy essential in ensuring that both parties are held to their commitments in scenarios where the exact performance is crucial to the non-breaching party.