Question

Algol contracts to purchase an antique merry-go-round carousel from a collector living in Railton Tasmania. Algol’s business Beacon Tours has expanded into adventure tours and is wanting to further expand into the provision of amusement rides. She has been unable to locate any other merry-go-round carousels for sale anywhere else in Australia and so to find one in Tasmania has made her very happy. She negotiates what she thinks is a fair price of $28, 000. On the day arranged for payment and collection the owner of the merry-go-round informs Algol that he had ‘changed his mind’ and ‘would not part with the merry-go-round’. Algol wants an order for specific performance.

Required: Advice Algol and Beacon Tours.

*Please identify the Parties, Issues, Legal Rules, Analysis and Conclusion

Answer 1

The Parties involved in the case:

· Plaintiff: Algol and Beacon Tours

· Defendant: Owner of the merry-go-round

Issue: Algol’s business was expanding into amusement rides. She contracts to purchase an antique merry-go-round carousel from a collector living in Railton Tasmania. A fair price of $28000 was fixed for the same. the payment was to be done on the day of collection of the carousel. On the day of the collection and payment, the owner of the merry-go-round informed Algol that he has changed his mind and wants to keep it for himself. Algol wants to consider an order of specific performance against the collector.

Legal Rule: A claim of specific performance can be filed by a buyer against the seller if the buyer has suffered loss due to the non-fulfilment of the contract. The buyer needs to illustrate the losses to file this claim.

Analysis: To file a claim of specific performance, Algol needs to state that her business expansion plan was based on the contract of the carousel. She may have taken capital from investors and stakeholders for the same and was waiting for the carousel for its execution. The non-fulfilment of the contract is causing her losses and putting a halt to her business’ expansion plan. She need to project concrete losses for winning the claim of specific performance. However if there are no losses associated with the non-fulfilment of the contract, then she may not win the claim.

Conclusion: Algol needs to be ready to project the losses incurred by her business due to the non-fulfilment of the carousel contract. Then only she can file an order for specific performance.