Other remedies: Specific Performance, Rescission, Reformation, and Equitable Remedies

Question 1

Specific performance (SP)

Answer 1

1. Existence of a contract
2. Contract terms are sufficiently certain to provide basis for court order
3. Satisfaction/excuse of conditions precedent for D’s performance
4. Damages are inadequate (property is unique)
5. Relief is equitable
6. Feasibility of enforcement

Question 2

Rescission

Answer 2

P must give notice to D and return benefits of contract prior to filing suit and upon discovery of grounds for rescission. Once contract is rescinded P can pursue restitution or replevin.

Question 3

Reformation

Answer 3

1. Mutual mistake—contract is reformed to conform to parties’ agreement prior to the writing if both parties were unaware that it did not do so
2. Unilateral mistake
   • If other party is aware of mistake and fraudulently induced the mistaken party’s erroneous belief or does nothing to correct it, then mistaken party can seek reformation
   • Otherwise not permitted
3. Defenses—laches, unclean hands, & subject to rights of innocent third parties

Question 4

Equitable defenses

Answer 4

1. Unclean hands—P’s conduct must be unethical or immoral (but need not cause injury to D) and conduct must closely relate to P’s claim
2. Laches—unreasonable delay in pursuing remedy that P was aware of; delay caused prejudice to D

Question 5

Declaratory judgment

Answer 5

P can seek judgment to determine rights, status, or other legal relations that arise out of, or are affected by, a deed, will, contract, statute or ordinance

Question 6

Restitution

Answer 6

P can recover when D has been unjustly enriched at the P’s expense if P has conferred a benefit on D that yielded a measurable increase in the D’s wealth

1. Remedies
   • Monetary judgment—based on extent to which D has been unjustly enriched at P’s expense
   • Constructive trust—P must prove that D holds title to (not just possession of) the property; retention of such property would unjustly enrich D; and legal remedy is inadequate
   • Equitable lien—imposed on D’s property as security for P’s claim; D must be unjustly enriched; and enrichment must relate to D’s property
   • Subrogation—permits P to stand in the shoes of a creditor/lienholder if D is unjustly enriched and P’s property was used to discharge an obligation/lien on D’s property
2. Defenses—innocent D’s changed position, bona fide purchaser, discharge for value (P’s mistaken payment to D used to discharge a debt or satisfy a valid claim), or unsolicited benefit

Question 7

Replevin

Answer 7

P can regain possession of the property and recover damages for loss of use of the property

Question 8

Ejectment

Answer 8

P must establish title to the land and right to immediate possession of it in order to regain possession; P can also seek damages.