Question

9.    Bo was the owner of Lot No. 1 on which he had built his home. Sadia owned the adjoining Lots No. 2 and 3, which were undeveloped, along with Lot No. 4 on which Sadia’s home was located. Bo wished to acquire Lot No. 2 in order to protect his home site from crowding if Lot No. 2 should be sold to a stranger.
Meeting Sadia on the street on January 2, Bo explained his wish to acquire Lot No. 2 and offered to buy it from Sadia for $75,000 cash. Sadia agreed and promised to deliver a deed to Lot No. 2 in 4 weeks. Bo paid Sadia $1,000 as a deposit or down payment towards the purchase price of $75.000.
On February 1, Sadia told Bo that she had changed her mind. Bo demands that Sadia perform the contract. Sadia contends that if there is any contract, it is unenforceable.
(a) [Skip part (a). We will discuss in class].
(b) In an action by Bo against Sadia for breach of contract, judgment for whom? Explain.
   [Skip parts (c) and (d). We will discuss in class.]   
(e) Assume that in addition to the [$1,000] payment, Bo, with Sadia’s knowledge and consent, entered on Lot No. 2 and had it cleared of brush on January 20 at a cost of $150, but Sadia still refused to convey. Would Bo be entitled to obtain a decree of specific performance to compel Sadia to deliver a deed to Lot No. 2 to Bo upon paying to Sadia the balance of $74,000? Explain. [We will discuss a “decree of specific performance” in class. You may assume that it means a “judgment.”]
[Skip parts (f) and (g).]

10.     Assume that in the preceding problem Sadia had sent to Bo a receipt for the $1,000 reading as follows:
“January 11. Received from Bo $1,000 on account of $75,000 purchase price of Lot No. 2 at 27 Y Street, Albans, NY Closing in 4 weeks. (Signed) Sadia.”
(a) Would Bo be entitled to a decree of specific performance against Sadia? Explain.   
(b) Assume that Sadia is willing to perform, but that Bo refuses. Would Sadia be entitled to damages against Bo? Explain.

Answer 1

Answer: Only question 2 answered Specific performance is basically an equitable remedy which is facilitated in case of any kind of breach of contract. The remedy needs the defendant to perform the action, as promised in the contract under the court orders. The specific performance of contract gets enforced in the following cases: There is no standard to measure the actual damage caused to the plaintiff, by the non-performance of the act by defendant. The defendant does the act in a way that monetary relief would not be adequate a. In case, Sadia denies from fulfilling her promise, then it may become difficult for Bo to assess the exact monetary damage suffered by him. In such a scenario, he will be entitled to a decree of specific performance against Sadia. b. If Bo denies from fulfilling his promise, then Sadia will suffer monetary damage which will not be entitled for specific performance by Bo.

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