Legal Definitions - in specie

In specie refers to the act of providing, returning, or distributing something in its original form or kind, rather than as a monetary equivalent or substitute. When something is given or received "in specie," it means the actual item, asset, or property itself is transferred, not just its cash value.

• Example 1: Estate Distribution

  A will specifies that a testator's collection of rare stamps should be given to their niece. Instead of selling the stamps and giving the niece the cash proceeds, the executor of the estate delivers the physical stamp collection directly to her.

  This illustrates "in specie" because the niece receives the actual stamp collection, not money representing its value. The distribution is made "in kind."

• Example 2: Contractual Performance

  A specialized manufacturer contracts to build a custom-designed machine for a client. If the manufacturer fails to deliver the machine, the client might seek a court order for "specific performance," compelling the manufacturer to build and deliver the unique machine as agreed, rather than just paying damages for the breach of contract.

  Here, the client is seeking the fulfillment of the contract "in specie," meaning they want the specific, custom-built machine itself, not merely financial compensation that might allow them to purchase a similar, but not identical, machine elsewhere.

• Example 3: Business Partnership Dissolution

  When a small business partnership dissolves, the partners agree to divide the company's physical assets, such as office furniture, computers, and remaining inventory, directly between themselves according to their ownership percentages, rather than selling all assets and splitting the cash.

  This is an "in specie" distribution because the partners are taking possession of the actual physical assets of the business, rather than converting everything to cash first.