Equitable Remedies: Specific Performance

Question 1

Equitable Remedies: Specific Performance

Specific Performance is the ________ equitable remedy.

The most important issue is ___________________.

Answer 1

Specific Performance is the most important equitable remedy.

• The most important issue is whether money damages would be adequate to protect the injured party.
• When legal remedy is inadequate, sometimes courts enforce specific performance of the contract (equitable remedy)
  
  • Legal remedy is inadequate when subject matter of contract is unique
    *

Question 2

Equitable Remedies: Specific Performance

Contracts for Land

Answer 2

• Rule: Subject matter is presumed unique when contract is for sale of land.
  
  • If the contract is breached, you can’t go out and buy “that piece of dirt.”
• In contracts for sale of land, specific performance is presumptive form of damages.
  
  • The defendant must prove otherwise

Question 3

Equitable Remedies: Specific Performance

Contract for Goods

Answer 3

General rule: Legal remedy is inadequate (meaning specific performance is enforceable) when goods are unique or in other proper circumstance (U.C.C. 2-716)

Other proper circumstances: When goods are difficult/impossible to replicate without undue burden, delay, or expense

Question 4

Equitable Remedy: Specific Performance

Contracts for Goods

Unique Goods

Answer 4

Unique Good: a rare or unusual object that’s the subject of the contract – money damages are less likely to be adequate because exact substitutes can’t be found.

• Peculiar or Sentimental Value
  Scarce/ Not readily attainable
• EX: An antique car, a highly unusual ring, a work of art

Question 5

Equitable Remedies: Specific Performance

Contract for Goods

**Replevin **is ________.

Answer 5

Replevin

• form of relief that is not contract based…
• when person claiming exclusive and immediate right to personal property in the possession of another seeks recovery of the property
• “That’s mine! Make him give it back!”

Question 6

Replevin is allowed when ________.

Answer 6

Allowed when

• cover is found to not be available after reasonable effort OR
• the circumstances reasonably indicate such effort will be unavailing
• Simple deposit on sale does not establish “exclusive and immediate right” to property

Question 7

Equitable Remedies: Specific Performance

Contracts for Personal Service

Answer 7

General Rule: Specific performance will NOT be granted in contracts for personal service

• Specific performance for contract for personal service is form of slavery
• enforcement would violate the public policy against involuntary servitude (if the employee is the defendant or against forcing an employer to accept services of an unwanted worker (if the employee is the plaintiff)
• • *An employment contract is not usually enforceable (on either side) by specific performance b/c they are a form of personal service contract

A bird that can sing, and will not sing, will not be made to sing.

Question 8

Equitable Remedies: Specific Performance

Contracts for Personal Service

Negative Covenant Exception

Answer 8

Negative covenant is clause in contract that says employee won’t work for anyone else

Rule: Negative covenant may be enforced in personal service contract if the employee is person of exceptional and unique knowledge, skill, and ability in performing the service

• Unique does not mean “one of a kind” or the best
• Simply means the same service could not easily be obtained from others