Question
. XYZ Corporation is a closely held corporation where there are only 100 shareholders and each holds only 1,000 shares. Nancy is one of the
. XYZ Corporation is a closely held corporation where there are only 100 shareholders and each holds only 1,000 shares. Nancy is one of the shareholders and she wants to increase the number of shares she owns so that she has more voting power in the company. Nancy makes an offer to Sally to purchase Sally's 1,000 shares in XYZ Corp. for $100,000. Sally accepts the offer, and their agreement is reduced to a writing. One term of the agreement is that the delivery of the shares and the payment is to be made in one week. However, before the transfer can occur, Sally repudiates the contract. Nancy sues for specific performance. Are money damages inadequate enough that specific performance should be granted? Explain your reasoning. What would be the outcome if other shares in XYZ Corp. were readily obtainable, though at a price of $150,000 for 1,000 shares?
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