Question
3. Seller, a fruit growers' cooperative, contracts to sell to Buyer, a fruit processor, 1,000 tons of loganberries a year for five years. In reliance
3. Seller, a fruit growers' cooperative, contracts to sell to Buyer, a fruit processor, 1,000 tons of loganberries a year for five years. In reliance on the contract, Buyer substantially expands his plant and engages in an extensive advertising campaign. Seller then repudiates the contract. The loss to Buyer is difficult to estimate but will probably exceed $500,000. Seller's entire assets do not exceed $100,000. There are no other loganberry growers within a reasonable distance. Buyer sues Seller for specific performance. Will a court order specific performance? Is the legal remedy of money damages inadequate? Explain your reasoning.
4. Stanfield sought to purchase a farm owned by Fisher. Stanfield made an offer to Fisher, who responded with the following letter: Dear Stanfield: I have given considerable thought to your offer to purchase my farm. Because I have owned this farm for many years, I have a keen interest in seeing that it is maintained. Knowing of the fine way in which you maintain your farm, I can rest assured you will do the same if you acquire my farm. As you know, I wish to hold out the small house and adjoining 10 acres. I am willing to sell the remainder of the farm, consisting of 335 acres of land. Included will be the large brick house, two barns, and all other improvements. (Then followed statements relative to price, taxes, insurance, closing costs, dates for closing, etc.) In the event this offer meets with your approval, please sign and return the copy of this letter in the self-addressed envelope. Sincerely yours, Fisher Stanfield signed and returned the letter to Fisher, thereby forming a contract. Fisher, however, later refused to convey the farm, and Stanfield sought specific performance. Assume you are the judge hearing the case. Would you grant the court order for specific performance? Explain your rationale.
5. On October 1, Buyer and Seller enter into a contract for the sale of a Ming Dynasty vase for $400,000 with delivery due on December 1. Seller contacts Buyer on October 15 and says that she changed her mind and is going to keep the vase since she thinks it will be worth more in the future. Buyer searches and finds two other Ming Dynasty vases that are currently for sale. One of the vases costs $1.2 million but it is of significantly higher quality. The other vase, priced at $200,000, is of much lower quality and has several cracks and chips in it. If Buyer purchased the higher priced Ming Dynasty vase, would a court likely grant cover damages? If Buyer chose not to purchase any vase, would a court grant market damages? What is the likelihood of a court granting specific performance under these facts?
6. Opera Singer, who is quite famous, contracts with Promoter to sing exclusively at Promoter's opera house during the coming season. Opera Singer repudiates the contract before the season begins in order to sing at Competitor's competing opera house. Promoter sues Opera Singer for specific performance. Opera Singer's performance at Competitor's opera house will cause Promoter a great loss in revenues that he can prove with reasonable certainty. Opera Singer could have found jobs singing at an opera house not in competition with Promoter. Will the court order specific performance to compel Opera Singer to sing at Promoter's opera house? Explain your reasoning. In the alternative, would a court order a negative injunction prohibiting Opera Singer from singing at Competitor's opera house? Would a court order a negative injunction if Opera Singer was singing at an opera house that was not in competition with Promoter?
7. Manager contracts to serve exclusively as sales manager in Owner's clothing store for a year. Manager breaches the contract by quitting shortly after beginning performance and goes to work for Competitor, a competitor of Owner. Owner sues Manager for an injunction, ordering Manager not to work for Competitor. What would be the result?
8. Shady Developments is a residential real estate developer who subdivided a large piece of property and then sold lots to individuals for homes. The sales contract between Shady Developments and each of the buyers of the lots includes a provision that obligates Shady Developments to build a working sewer system to serve both the development and each of the properties sold. Byron purchases a lot from Shady Developments and Byron then builds a house on the lot. However, the sewer system that Shady Developments constructs is flawed in many respects, and it now threatens the health of Byron and his family. The smell of the broken sewer system is so great that it makes living in the area unpleasant not only for Byron but also for his neighbors. Byron files a lawsuit and seeks specific performance to enforce the provision that requires Shady Developments to build a working sewer system. Supervising Shady Developments in correcting the sewer system will take a great deal of the court's judicial resources. There are no other local companies that can immediately install a sewer system in the development. If you were the judge, would you order specific performance? Is it feasible to do so? Explain your reasoning.
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