Ch 1 Sec 5- Outline - Contracts Outline Ch 1 Sec 5...

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Contracts Outline Ch 1 Sec 5 Enforcement in Equity I. Specific Performance- General a. Elements of Specific Performance i. Terms of contract must be certain ii. Inadequate remedy at law iii. Enforcement must be equitable iv. Enforcement must be feasible v. Mutuality of remedy is no longer required b. General Rule: Specific Performance must have an inadequate legal remedy but will be denied if it is too complicated for the court to supervise i. Curtis Brothers- Farmer contracted to sell entire tomato crop 1. Farmer breached by wanting to sell them to someone else 2. There was no open market to fill the buyer’s order (buyer couldn’t buy the tomatoes elsewhere) so buyer sued for specific performance 3. You can’t specifically enforce a personal services contract a. Therefore, you can’t grant a negative injunction either b. EXCEPTION: When services are unique are unavailable elsewhere, then the contract can be enforced negatively by granting an injunction of SP 4. When no adequate remedy at law exists, specific performance of a contract touching the sale of personal property will be decreed with the same freedom as in the case of a contract for the sale of land a. Damages were calculable- the price of the tomatoes he lost out on b. However, the damages are insufficient in this case because he was not able to go out in the open market to buy what he needed c. Therefore, NO ADEQUATE REMEDY AT LAW, so SP is Granted ii. Manchester Dairy- In this case P, Dairy Association, had a contract with D to provide all the milk from all his cows for three years. 1. D failed to provide the milk- court granted specific performance 2. RULE: There’s an inadequate remedy at law when: a. Damages are incalculable b. There’s an expense arrangement and some people get out, the burden of the people left in the pool becomes too much i. This is a case involving an ASSOCIATION ii. The breach raises everyone else’s expenses b/c they’re shared c. Restatement Second, 360- Factors Affecting Adequacy of Damages: In determining whether the remedy in damages would be adequate (to protect the expectation interest of the injured party), the following circumstances are significant: i. the difficulty of proving damages with reasonable certainty ii. the difficulty of procuring a suitable substitute performance by means of money awarded as damages iii. the likelihood that an award of damages could not be collected d. Affirmative vs Negative Decree i. Affirmative - courts supervise over the specific performance 1. Courts don’t like these unless they have man power for supervision
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ii. Negative- the other party supervises 1. Court only comes into play when the other party reports a violation of the injunction 2. At that point, the court holds the violating party in contempt of the court
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Ch 1 Sec 5- Outline - Contracts Outline Ch 1 Sec 5...

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