Obligations to do some work

Question 1

General rule for obligations to do?

Answer 1

GENERAL RULE: Courts generally do not order contracts “to do something” to be specifically performed  preference to give an award of damages

Question 2

Exception to the general rule?

Answer 2

EXCEPTION TO THE GENERAL RULE  contracts where land was given on the condition that work would be done. Obligations to do something may also be enforced if the principles are met.

Question 3

TEST for a Building Contract Tanenbaum

Answer 3

Starting point is damages. But SP can be granted when the three criteria are fulfilled: Tanenbaum
(1) The work is certain and defined by the contract
o Finality & Supervision – court doesn’t want to grant an order to provide an indefinite series of applications to the court to ensure work is complied
 The question is whether the court would be required to be perpetually engaged in ensuring the fulfillment of the order (Argyll Stores)
o Sufficient clarity – description of the works must be sufficiently clear & defined in the contract. It must be reasonable to nature & subject matter of the undertaking, and the conditions under which it was entered into
 Clauses can’t be vague because the D needs to know what they have to do (Argyll Stores)
* “Keep the store open for retail trade during business hours”  not precise enough

(2) the plaintiff has a substantial interest in having the contract performed, which is of such a nature that he can’t adequately be compensated by damages
o More than de minimis – interest in the actual performance rather than being remunerated.
 Needing a larger water pipe installed is a substantial interest for developing a new community of houses. The smaller pipe would have made this impossible.
o “of such a nature that he cannot be adequately compensated for breach of the contract by damages.”
o Is there something that the D has to do personally? If yes, then you have to look at equitable remedies because damages aren’t enough.

(3) The defendant has by the contract obtained possession of land on which the work is contracted to be done
o The Court doesn’t want the Defendant to gain on their wrongdoing right by breaching just paying, as opposed to having to do something that may be more onerous.
Undue Burden: Specific performance will be denied where it would impose an undue burden on the D compared to the benefit to the P, where it is not possible to make an order specific enough (Argyll Stores)  what is the actual value for the plaintiff to have D keep the business in the shopping complex VS the cost the defendant to keep the business going