What distinguishes specific performance from damages in contract law?

Specific performance is fundamentally an equitable remedy that compels a party to fulfill their contractual obligations as agreed upon rather than providing monetary compensation. This concept is crucial in situations where the subject of the contract is unique or where damages would not adequately compensate the aggrieved party. For example, if someone contracts to buy a unique piece of real estate, monetary damages would not suffice if the buyer cannot acquire an equivalent property elsewhere; rather, specific performance would compel the seller to go through with the sale.

In contrast, damages refer to a legal remedy where a party is compensated with money for losses resulting from a breach of contract. This compensation aims to place the aggrieved party in a position as though the contract had been performed.

Understanding this distinction is key for legal practitioners, especially when advising clients on breach of contract issues, as specific performance cannot always be granted and is typically reserved for situations where monetary damages are insufficient.