Remedies

Question 1

Enforcement or supervision problems generally do NOT arise in which of the following contract situations?

A Personal services contracts.

B Land sale contracts where the land or a party to the contract is out of state.

C Home sale contracts.

D
Construction contracts.

Answer 1

Enforcement or supervision problems generally arise in the following three contract situations: (i) personal services contracts; (ii) land sale contracts where the land or a party to the contract is out of state; and (iii) construction contracts.

Question 2

determining whether contracts damages are certain…what factors does the court look at?

Answer 2

Date of contract formation goes to foreseeability of damages.As with tort damages, contract damages must be sufficiently certain. Again, the court will consider such factors as the availability of evidence, the certainty of actual loss, and the defendant’s culpability in determining whether damages are sufficiently certain

Question 3

What distinguishes an equitable lien from a constructive trust?

Answer 3

The requirements for imposition of an equitable lien are similar to those for a constructive trust. An equitable lien can be imposed on property to which the defendant holds title and to which the wrongfully obtained property can be traced. Like a constructive trust, an equitable lien gives the plaintiff priority over other creditors with claims to the property that is subject to the equitable lien. Unlike a constructive trust, however, an equitable lien can be imposed on property that was merely improved with the plaintiff’s property or the proceeds thereof. As with a constructive trust, most courts require a showing that the legal remedy is inadequate, but in any event defendant’s insolvency usually suffices.