Question 1

Scott agreed to sell to Benny his property at the Fave Condominium. Benny paid the initial deposit to Scott, and started sourcing for a bank to finance his purchase. In the meantime, the market prices of units at the Fave Condominium shot up unexpectedly. Scott refused to go through with the sale to Benny. Benny sued Scott.

Part One

(a) Scott has obviously breached his agreement for sale with Benny. What would be a sufficient remedy for Benny?

A. Difference in the price of another unit in the same condominium and the contract price of Scott's unit.

B. An order for an injunction to stop Scott from selling his unit to someone else.

C. An order for specific performance to force Scott to complete the sale of his unit to Benny.

D. Any one of the above 3 options.

(b) If Benny is unable to go through with the purchase of the unit, but Scott wants to hold him to the contract, what can Scott ask of the Court?

A. Difference in the price that he sells it to another party, and the contract price with Benny.

B. An order for an injunction to stop Benny from breaching the contract.

C. An order for specific performance to force Benny to complete the purchase of his unit from Scott.

D. Any one of the above 3 options.

(c) A counter offer will have the following effect, or effects:

A. A counter offer will "cancel" the first offer.

B. A counter offer will be a fresh offer, in place of the first offer.

C. Once a counter offer is made, one cannot revive the first offer any longer.

D. All of the above.

Part Two

(a) What you understand by the term "Specific Performance?[3 marks]

(b) Can a party choose to ask for a Specific Performance Order instead of asking for damages because he prefers the other party to perform the contract instead of compensating him in damages?[2 marks]

(c) What are the conditions under which a party may ask, and expect to get, an order for specific performance from the Court? You may wish to contrast this remedy with other remedies that the Court would grant for breach of contract. Please use illustrations if necessary to explain.