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Specific Performance is a term used in contract law - Leaving Cert Business - Question C - 2007
Question C
Specific Performance is a term used in contract law. Explain what it is and when it would be used.
Worked Solution & Example Answer:Specific Performance is a term used in contract law - Leaving Cert Business - Question C - 2007
Step 1
Explain Specific Performance
Answer
Specific Performance is a legal remedy typically enforced by a court in cases of breach of contract. It compels a party to fulfill their contractual obligations as originally agreed upon, rather than simply providing monetary damages. This remedy is particularly relevant when monetary compensation is inadequate to remedy the loss caused by the breach.
Step 2
When is Specific Performance Used?
Answer
Specific Performance is often employed in contracts involving unique items or properties, where monetary damages cannot accurately reflect the value of the contract. A prime example is in real estate transactions, such as the sale or lease of land, where the specific property is deemed irreplaceable or unique. In such instances, a court may order the party in breach to proceed with the contract, ensuring that the original agreement is honored.