In what scenario is specific performance typically ordered?

Prepare for the Texas Contract Law Exam. Study with engaging multiple choice questions, each with explanations. Get ready to excel in your Texas Contract Law Exam!

Specific performance is a legal remedy that compels a party to execute a contract according to its precise terms, rather than simply providing monetary damages. This remedy is typically ordered in situations where monetary compensation would not adequately remedy the injury caused by a breach of contract.

The principle revolves around the idea that some contracts involve unique goods, services, or circumstances, making them irreplaceable in a financial sense. For instance, in real estate transactions, every piece of property is distinct, and monetary damages might fail to compensate the injured party fully. In such cases, a court may order specific performance to ensure the contract is fulfilled as originally agreed.

Other options present scenarios that do not typically justify specific performance. The modification of a contract by mutual agreement generally reflects a change in the original terms and is better suited for other remedies. Implied promises may not correspond to clear, enforceable contracts that would warrant specific performance. Similarly, a termination of the contract by consent indicates that the parties have mutually agreed to rescind the contract, making enforcement moot.

Thus, the scenario where monetary compensation is unavailable aptly encapsulates the circumstances under which specific performance is customarily ordered.

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