California First-Year Law Students' Exam (Baby Bar) — MCContractsEasy
A buyer enters into a contract to purchase a specific parcel of land for $200,000. Before the closing date, the seller informs the buyer that they have received a higher offer and are refusing to sell the land to the original buyer. The land is unique due to its location and zoning. If the original buyer sues for specific performance, what is the most likely outcome?
- AThe court will order the seller to pay the buyer the difference between the contract price and the higher offer.
- BThe court will grant specific performance, compelling the seller to convey the land.
- CThe court will deny specific performance and award monetary damages.
- DThe court will order specific performance only if the buyer can prove the seller acted in bad faith.
Show answer & explanationAnswer & explanation
Correct answer: B. The court will grant specific performance, compelling the seller to convey the land.
Specific performance is a common remedy for contracts involving the sale of real estate, as every parcel of land is considered unique. Monetary damages are often deemed inadequate because no two parcels of land are exactly alike.
Why the other options are wrong
- A. This describes expectation damages, but specific performance is the preferred remedy for unique goods.
- C. Monetary damages are generally considered inadequate for unique items like land.
- D. Specific performance for land does not typically require proof of bad faith; uniqueness of the subject matter is sufficient.
Specific Performance for Land
A court-ordered remedy compelling the seller of real estate to convey the property to the buyer, because land is considered unique and monetary damages are often inadequate.
- Land is almost always considered unique.
- Monetary damages are usually insufficient to compensate for breach.
- Specific performance is a common and often preferred remedy for real estate contracts.
Memory trick: Specific Performance: Land is Special, Get the Deed!