CIPS Commercial Contracting (L4M3) Practice Test

The principle that allows a court to enforce specific performance is fundamentally about ensuring compliance with contractual agreements. Specific performance is a legal remedy where the court requires a party to fulfill their obligations under a contract rather than simply seeking monetary damages for a breach. This principle is particularly relevant in situations where monetary compensation would not adequately restore the injured party, especially in cases involving unique goods, property, or situations where the subject matter of the contract cannot be easily replicated.

In enforcing specific performance, courts aim to uphold the sanctity of contracts and ensure that parties adhere to their promises. This underscores the importance of contractual obligations in commercial agreements, emphasizing that contracts not only create expectations but also bind parties to their agreed-upon terms. Thus, the correct understanding of why specific performance is enforced hinges on the need for compliance with the commitments made by the parties involved.