Paralegal Certification PrepContracts and Business LawMedium
A paralegal is assisting an attorney with a case involving a breach of contract for the sale of unique, custom-fabricated industrial machinery. The buyer had paid a substantial deposit, but the seller failed to deliver the machinery as promised, and no similar machinery is available on the market. The buyer is seeking to compel the seller to deliver the specific machinery rather than just monetary damages. What type of remedy is the buyer seeking?
- AMonetary Damages
- BSpecific Performance
- CReformation
- DRescission
Show answer & explanationAnswer & explanation
Correct answer: B. Specific Performance
Specific performance is an equitable remedy where a court orders the breaching party to perform their contractual obligations, rather than simply paying money damages. It is typically granted only when the subject matter of the contract is unique and monetary damages would be inadequate, as in the case of custom-fabricated machinery.
Why the other options are wrong
- A. Monetary damages (e.g., compensatory damages) aim to compensate the injured party for their losses.
- C. Reformation is the modification of a contract to reflect the true intent of the parties due to a mistake or fraud.
- D. Rescission is the cancellation of a contract, returning parties to their pre-contractual positions.
Specific Performance
An equitable remedy that compels a breaching party to fulfill the terms of a contract, rather than paying monetary damages. It is typically ordered when the subject matter of the contract is unique and monetary damages would not adequately compensate the non-breaching party.
- Available when goods are unique or land contracts.
- Not available for personal service contracts.
- Discretionary remedy, not granted automatically.
Memory trick: Specific Performance = Perform Exactly as Promised.