Coercive Relief in Contract

Question 1

Employment K in SP:

Answer 1

Employment K’s are not specifically enforcement bc difficulties it would create in the workplace

Question 1

Specific Performance

Answer 1

Specific performance is a court ordered remedy that requires the breaching party to actually perform or complete the terms of the contract. SP requires:

(1) A valid and enforceable contract + Breach of contract;
(2) Legal remedy for breach must be inadequate to place aggrieved party in position she would have been if the contract had been performed;
(3) Judicial enforcement of the decree of specific performance must be feasible;
(4) Whether non breaching party had substantially rendered performance or such performance is assured of being rendered / Mutuality and;
(5) No countervailing defenses precluding specific performance.

Defenses include, but are not limited to:
Statute of Frauds
Laches (unreasonable delay)
Unclean hands (unfairness)
Hardship
Mistake / innocent misrepresentation
Bonafide purchaser for value

Question 2

Construction K’s in SP:

Answer 2

The general rule is that a contract for construction will not be specifically enforced because damages are generally adequate and it is not feasible for the court to superintend performance. If damages are not adequate and the problems of judicial admin are insurmountable, the SP might be granted.

Question 3

Rescission

Answer 3

Undoes the contract and returns parties to their positions prior to agreement. A court order may or may not be necessary to effect this remedy (the parties may simple agree between themselves). Can be ordered by an injunction,??? which is a form of coercive relief???

Question 4

Reformation

Answer 4

An equitable remedy by which a court will change a written agreement to reflect the actual intent of the parties, usually to correct fraud or mutual mistake in the writing, such as an incomplete property description in a deed. In cases of mutual mistake, the actual intended agreement must usually be established by clear and convincing evidence. In cases of fraud, there must be clear evidence of what the agreement would have been but for the fraud.

Question 5

Novation

Answer 5

The act of substituting a new obligation for an old old. The new obligation either replaces an existing obligation with a new obligation or replaces an original party with a new party. A novation may substitute: (1) a new obligation between the same parties (2) a new debtor; (3) a new creditor; of (4) a substantive party who neither owed the previous duty nor was entitled to its performance
Ex: switching out a service provider

Question 6

Modification

Answer 6

A change to a contract in one or more respects, introducing new elements into the details of the K and canceling others but leaving the general purpose and effect undisturbed. Modification of a K normally occurs when the parties agree to alter a K provision or to include additional obligations, while leaving intact the overall nature and obligations of the original agreement. Although a court can rule that an enforceable modification occurred between the parties it will rarely impose a modification as a judicial remedy, except in the case of modification of a child or spousal support order based on changed circumstances.

Modification by abatement = percy says no extra acre. Lets modify sales contract, and abate the acreage. Make it 4 acres instead of 5.

Question 7

Accord and Satisfaction

Answer 7

When a borrower owes a certain amount to a lender but cannot pay the full sum, he can ask the lender if he can pay less than the full amount to settle the debt. If the lender agrees to such a change in terms, it would mean that the lender and borrower are in accord (agreement) on the new amount and the new amount will satisfy borrower’s obligation in full to repay the debt. This is a key example of accord and satisfaction.