Also known as: specific performance methods · specific performance
Written by attorneys · grounded in primary & secondary sources — see below
2 senses
A revenue recognition approach that records income only upon completion of a specific act that earns the revenue. Preparatory steps generate no recognized revenue. The method applies to commissions earned on a real estate sale, fees for performing surgery, or charges for completing equipment repairs.
A revenue recognition approach that records income only upon completion of a specific act that earns the revenue. Preparatory steps generate no recognized revenue. The method applies to commissions earned on a real estate sale, fees for performing surgery, or charges for completing equipment repairs.
Select any source to read its text and confirm it supports the definition.
An equitable remedy that orders a party to perform its contractual obligation rather than pay damages. A court may grant the remedy when the subject matter is unique or when damages would be inadequate. The decree may include terms addressing payment, damages, or other just relief.
Neil contracted with Maxwell for a one-of-a-kind prototype surgical robot essential to his rural medical practice. Maxwell repudiated after Neil had renovated exam rooms and hired staff in reliance. Because no market substitute exists and damages would be difficult to calculate or collect, the court orders Maxwell to deliver the identified robot to Neil.
An equitable remedy that orders a party to perform its contractual obligation rather than pay damages. A court may grant the remedy when the subject matter is unique or when damages would be inadequate. The decree may include terms addressing payment, damages, or other just relief.
Each sense below has its own examples, sources, and questions.
The specific performance method recognizes revenue only when the critical act is completed. Proportional performance recognizes revenue as incremental steps occur. No revenue is recorded under the specific performance method during preparatory work.
Supporting sources
Bridge Clean and MonitorCorp reached an accord under which MonitorCorp would deliver already-identified air-quality units. When MonitorCorp breached the accord by reallocating the units, Bridge Clean sued for specific performance of the accord. The court grants the order compelling delivery in addition to any damages for partial breach.
After MonitorCorp repudiated the contract for custom-calibrated units already assigned serial numbers and stored for Bridge Clean, Bridge Clean sought delivery of those specific units. The court permits recovery of the identified goods or specific performance because the circumstances qualify under the governing article.
Ash Stack agreed to transfer a rooftop server farm and easement to Prairie Digital even though the contract contained a liquidated damages provision. When Ash Stack repudiated, Prairie Digital sought specific performance. The court grants the remedy because the liquidated damages clause does not preclude equitable enforcement of the duty.
A buyer may obtain specific performance when the goods are unique or when other proper circumstances exist. Identification of the goods to the contract strengthens the claim. The decree may include terms the court deems just regarding payment or other relief.
No. Specific performance remains available even when the contract provides for liquidated damages. The clause does not constitute an election to limit the injured party to money. Courts retain discretion to grant equitable relief when damages would be inadequate.
Breach of the accord by the obligor does not automatically discharge the original duty. The obligee may enforce either the original duty or the accord. The obligor may sue for specific performance of the accord plus damages for any partial breach.