MT311 Business Law Part I
There are four situations we have to review in terms of specific performance and possible breach of contract. First we must understand the elements of specific performance then we can evaluate how they relate to each scenario. “In some situations, damages are an inadequate remedy for a breach of contract…equitable remedies include rescission and restitution, specific performance, and reformation” (Miller & Jentz, 2009). Specific performance is an equitable remedy that requests the promised act be performed per the contract. This is not to be confused with any monetary exchange, rather that the contract be fulfilled as agreed upon originally. Sometimes the performance is of more value than monetary damages, which is why the specific performance remedy appealing for certain types of situations. “Normally, however, specific performance will not be granted unless the party’s legal remedy (monetary damages) is inadequate” (Miller & Jentz, 2008). A good example of this clause is in regards to unique or rare items that cannot just be bought on the open market. This is where monetary damages would not be a factor. The advantages of specific performance are that the non-breaching party is spared the hassle of collecting judgment, they do not need to set up another contract, and the performance may be of more value than monetary damages. The first scenario states: Tarrington contracts to sell her house and lot to Rainier. Then, on finding another buyer willing to pay a higher purchase price, she refused to deed the property to Rainier. The specifics of this case are unknown; however, based solely on the information provided I believe Rainier is entitled to specific performance as long as the property has not yet been sold. One element of real estate specific performance is that the contract must be fulfilled, unless the land is unavailable because it was sold to someone else. In that scenario damages will be awarded...
References: Miller, R. L. & Jentz, G.A. (2008). Fundamentals of Business Law Part I. Cengage Learning.
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