California First-Year Law Students' Exam (Baby Bar) — MCContractsMedium
A buyer and a seller enter into a written contract for the sale of a rare, one-of-a-kind painting for $100,000. Before the closing date, the seller discovers a defect in the painting that significantly diminishes its value, making it commercially worthless. The buyer, unaware of the defect, insists on proceeding with the sale. If the buyer sues for specific performance, what is the most likely outcome?
- AThe court will order the seller to find a comparable painting for the buyer.
- BThe court will order specific performance, requiring the seller to deliver the damaged painting.
- CThe court will order specific performance, but reduce the purchase price to reflect the diminished value.
- DThe court will deny specific performance due to the destruction of the unique subject matter.
Show answer & explanationAnswer & explanation
Correct answer: D. The court will deny specific performance due to the destruction of the unique subject matter.
Specific performance is typically available for unique goods when monetary damages are inadequate. However, if the unique subject matter of the contract is destroyed or significantly impaired, making performance impossible or commercially unreasonable, specific performance will be denied.
Why the other options are wrong
- A. The contract was for a 'one-of-a-kind' painting, so finding a comparable item is not possible.
- B. Ordering specific performance of a worthless item would be an inequitable remedy.
- C. While price reduction might occur in other contexts, specific performance is about compelling the exact promised act, which is impossible here.
Specific Performance
A court order requiring a party to perform a specific act, usually to complete a transaction as promised in a contract.
- Available only when monetary damages are inadequate.
- Commonly used for unique goods (e.g., land, rare art).
- Not available for personal services contracts.
Memory trick: Courts Order Specific Performance for Unique Goods, Not Broken Ones.