General Equity Corporation enters into a contract with Honi, who agrees to create artwork for General's main office building. Honi delays and eventually refuses to perform. Meanwhile, General contracts to sell the building to Ideal Investments, Inc., but before the transaction is complete, Jewel Funds Company offers to pay a higher price. General refuses to transfer the building to Ideal. In separate suits by General against Honi and by Ideal against General, each plaintiff seeks specific performance. How might the court rule in each case, and why?

Question

What will be an ideal response?

Answer 1

Generally, the equitable remedy of specific performance will be granted only if two requirements are met: damages (money), under the circumstances, must be inadequate as a remedy, and the subject matter of the contract must be unique. The basic requirements for specific performance are usually not met in cases involving personal service contracts. If the identical service is readily available from others, the service is not unique, and damages for nonperformance are adequate. If, however, the services are so personal that only the contracting party can perform, the subject matter of the contract satisfies the test of uniqueness; but a court may refuse to grant specific performance if (1) enforcement of an order of specific performance requires involuntary servitude, which is prohibited by the Thirteenth Amendment to the U.S. Constitution, or (2) it is impractical to impose an order of meaningful performance on someone against his or her will. In the case of the artist, specific performance is likely not an appropriate remedy. In a sale of land, the buyer's contract is for a specific piece of real property. The land under contract is unique, because no two pieces of real property have the same legal description. In addition, damages would not compensate a buyer adequately, as the same land cannot be purchased elsewhere. In the case of Ideal, specific performance would be an appropriate remedy.