SP: Sale of Goods/Chattels

Question 1

What are the situations where we don’t want specific performance?

Answer 1

HOW: We don’t want SP in some situations: considerations
1. Unfair transactions – Specific performance will be refused where the transaction is unfair to begin with (Falcke)
o Falcke: plaintiff knew high value, defendant did not
o Falcke: inadequacy of the price is so great that courts should not grant SP
o Courts typically won’t enforce hard bargains with SP
2. Uncomfortable for years – SP is refused when it ties parties in an uncomfortable situation for many years
3. Goods Aren’t Unique – SP is not granted for fungible goods, but can be granted when goods are unique in some way:
o Commercially unique – ex: shortage or location of supply
 RULE: Goods can be commercially unique because of shortage or because of the particular location of supply; in those cases, specific performance will be available: Sky Petroleum
 Sky Petroleum – SP for sale of petroleum granted since it was in oil crisis. Oil was hard to find at the time and price was rising/falling so quickly it was hard to determine damages.
 Does not mean that the thing being bought is simply a good investment – this is measurable in damages so not inadequate
o Unique in another way:
 One of a kind object
 Uniquely suitable for plaintiff’s needs