What is the legal remedy known as when a court orders one party to perform their portion of a contract?

When a court orders one party to fulfill their obligations as outlined in a contract, the legal remedy is referred to as specific performance. This remedy is particularly relevant for contracts involving unique goods or properties, such as real estate, where monetary damages might not adequately compensate the injured party. Specific performance compels the party to carry out their contractual duties, ensuring that the non-breaching party receives precisely what was agreed upon rather than simply being paid for losses incurred from the breach.

This remedy is grounded in the principle that some agreements contain terms that are so unique or essential that a legal substitute is insufficient. For example, in real estate transactions, since each property is unique, a court may find that enforcing the contract through specific performance is necessary to honor the intentions of both parties. This helps maintain the integrity of contract law by ensuring that parties adhere to their commitments.

Other remedies mentioned, such as liquidated damages, compensatory damages, and restitution, focus on financial compensation or the return of benefits conferred, rather than forcing a party to complete the contractual obligation itself. Therefore, specific performance is the proper remedy when the legal system seeks to ensure compliance with a contract's terms rather than just providing compensation for a breach.