In a specific performance contract, what remedies are available if a party breaches?

• A. Rescission
• B. Damages
• C. Specific performance
• D. All of the above

Answer: (D)

When a party breaches a contract that requires performance, the non-breaching party isn’t limited to one remedy. They can seek damages to be compensated for the loss caused by the breach, rescission to cancel the contract and restore the parties to their pre-contract positions, or specific performance to force the breaching party to go ahead and perform as promised. Specific performance is chosen when monetary damages wouldn’t adequately compensate for not receiving the actual performance, which is often the case when the subject matter is unique. Because all three remedies can be appropriate depending on the situation, the best answer is that all of these remedies may be available.