Which statement about equitable remedies is true?

An accurate understanding of equitable remedies is essential in corporate and business law. In this context, the principle behind the decree of specific performance highlights the nature and limitations of equitable remedies.

A decree of specific performance is a remedy that compels a party to fulfill their contractual obligations when monetary damages are insufficient to resolve the issue adequately. This is often applied in contracts involving unique goods or real estate, where no adequate substitute exists. The statement highlights that specific performance will not be granted if damages (monetary compensation) can sufficiently address the harm caused by the breach of contract. Therefore, the correctness of this statement is grounded in the fundamental principle that courts seek to provide appropriate remedies that align with the interests of justice and equity, ensuring that parties are not unjustly deprived when there is an adequate alternative.

This principle helps clarify why contracts related to personal services or those where unique performance is not necessary might not result in an order for specific performance. Such limitations serve to regulate how equitable remedies are applied and ensure they are used in appropriate circumstances.