What does "specific performance" entail in contract law?

Specific performance is a legal remedy used in contract law where a court orders a party to fulfill their contractual obligations as agreed upon in the contract. This remedy is typically sought in situations where monetary damages would be inadequate to compensate the injured party, such as in cases involving unique goods or real estate where no substitutes are available.

This differs from other remedies like damages, which focus on providing financial compensation for loss (the first choice), restitution aimed at restoring parties to their original positions before the contract (the second choice), or rescission, which involves canceling the contract altogether through mutual agreement (the fourth choice). Specific performance is particularly significant in equity, where the emphasis is on enforcing the actual terms of a contract rather than providing a monetary equivalent for breaches. Thus, the essence of specific performance is to ensure compliance with the contract itself, demonstrating its nature as an equitable remedy rather than a punitive or restitutory measure.