Which legal remedy compels a party to perform their obligations under a contract?

The legal remedy that compels a party to perform their obligations under a contract is specific performance. This remedy is particularly relevant in situations where monetary damages are insufficient to resolve the breach of contract, such as in real estate transactions where the unique characteristics of the property are critical to the buyer.

Specific performance directs the breaching party to fulfill their contractual duties exactly as agreed upon, rather than simply paying damages to the aggrieved party. For instance, if a seller refuses to transfer ownership of a property that was contractually agreed upon, a court may order the seller to complete the sale.

This remedy is favored in real estate because every piece of property is unique, meaning that a monetary award may not adequately compensate the buyer for the specific property they were aiming to purchase. This sets specific performance apart from other remedies such as rescission, which cancels the contract, or damages, which provide monetary compensation for losses incurred.