What legal action is taken when a buyer sues a seller for contract fulfillment?

When a buyer sues a seller for contract fulfillment, the legal action taken is known as specific performance. This is a legal remedy that requires the party who breached the contract—in this case, the seller—to fulfill their obligations as outlined in the contract. The rationale behind specific performance is that monetary damages may not adequately compensate the buyer, especially in cases involving unique properties or specific goods.

In real estate transactions, when a buyer is seeking specific performance, they are requesting the court to compel the seller to complete the sale as agreed upon in the contract, rather than simply seeking financial compensation. This remedy emphasizes the importance of the actual property involved, which is often deemed unique or irreplaceable.

Other legal actions such as compensatory damages focus on award amounts for losses incurred due to the breach but do not ensure the contract terms are fulfilled. Contract renegotiation may happen through mutual agreement but is not a legal action imposed by a court. Resolution of disputes could encompass various methods, but in the context of specific performance, it specifically targets the enforcement of the original contract terms rather than merely settling differences.