Specific Performance in Contract Law: When and How Courts Enforce Contracts

Question 1

Which of the following is a fundamental principle underlying the availability of specific performance?

Accepted Answer

It is only granted if damages would be an inadequate remedy.

Answer

It is only granted for contracts involving the sale of land.

Answer

It is only granted if the contract is in writing.

Answer

It is only granted if the defendant is a government entity.

Question 2

In which circumstance is specific performance most likely to be granted for a contract for the sale of goods?

Accepted Answer

When the goods are unique or rare.

Answer

When the goods are readily available in the market.

Answer

When the buyer has fully paid for the goods.

Answer

When the seller is a large corporation.

Question 3

Which of the following is NOT a factor considered by the court when determining whether to grant specific performance?

Accepted Answer

The national interest.

Answer

The conduct of the parties.

Answer

The potential hardship to the defendant.

Answer

The availability of alternative remedies.

Question 4

How does the availability of specific performance vary between unique and generic goods?

Accepted Answer

Specific performance is generally more accessible for unique goods than for generic goods.

Answer

Specific performance is always available for unique goods but never for generic goods.

Question 5

Specific performance is a legal remedy that:

Accepted Answer

Compels parties to perform their contractual obligations in accordance with the terms of the contract

Answer

Awards damages for breach of contract

Answer

Rescinds the contract and returns the parties to their pre-contractual positions

Answer

Allows the innocent party to terminate the contract

Question 6

Which of the following is NOT a defense to an action for specific performance?

Accepted Answer

Infancy

Answer

Impossibility

Answer

Frustration

Answer

Laches

Question 7

The doctrine of part performance can be used to:

Accepted Answer

Prevent the Statute of Frauds from being used as a defense

Answer

Create a binding contract despite the absence of a written agreement

Answer

Make a contract enforceable even if it is not supported by consideration

Answer

Allow a party to sue for specific performance of a contract that would otherwise be unenforceable

Question 8

Which of the following is an example of a case where specific performance was granted?

Accepted Answer

Sale of a rare painting

Answer

Contract for the sale of 100 tons of wheat

Answer

Agreement to provide personal services

Answer

Lease of a car

Question 9

How can hardship be established as a valid defense against an order of specific performance?

Accepted Answer

Demonstrate that fulfilling the contract would cause extreme hardship or disproportionate loss

Answer

Prove that the contract is invalid or unenforceable

Answer

Show that the plaintiff has not suffered any damages

Question 10

In which of the following situations is a court in a civil law system more likely to grant specific performance as a remedy compared to a common law system?

Accepted Answer

Contract for the sale of a unique painting

Answer

Contract for the construction of a building

Answer

Contract for the supply of corn

Question 11

Which of the following is a fundamental requirement for a court to grant specific performance?

Accepted Answer

The subject matter of the contract must be unique and not readily available in the market.

Answer

The plaintiff must have suffered significant financial loss as a result of the breach.

Answer

The contract must be in writing and signed by both parties.

Answer

Specific performance must be the only available legal remedy for the plaintiff.

Question 12

What is the primary objective of specific performance as a legal remedy?

Accepted Answer

To compel the defendant to fulfill their contractual obligations and carry out the agreed-upon actions.

Answer

To compensate the plaintiff for financial damages incurred due to the breach of contract.

Answer

To deter parties from breaching contracts in the future by imposing consequences for non-performance.

Answer

To punish the defendant for violating the terms of the contract.

Question 13

What is the primary effect of a decree of specific performance issued by a court?

Accepted Answer

It orders the defendant to perform the specific actions required by the original contract.

Answer

It creates a new contract between the parties that replaces the original agreement.

Answer

It terminates the original contract and releases both parties from their obligations.

Answer

It awards monetary damages to the plaintiff as compensation for the breach.

Question 14

In which of the following situations would a court be more likely to grant specific performance?

Accepted Answer

The subject matter is a unique work of art with sentimental value

Answer

The subject matter is a common household item that can be easily replaced

Answer

The breach of contract involves a delay in delivery of goods

Question 15

Which of the following factors is most commonly considered by courts in determining whether to grant specific performance?

Accepted Answer

The inadequacy of monetary damages to compensate for the breach

Answer

The level of inconvenience to the breaching party

Answer

The presence of alternative legal remedies

Answer

The monetary value of the subject matter of the contract

Question 16

Which of the following is a primary advantage of specific performance as a remedy for breach of contract?

Accepted Answer

It ensures precise fulfillment of the parties' contractual obligations

Answer

It is available in all cases of breach of contract

Answer

It is always less expensive than damages

Question 17

What is the purpose of the doctrine of mutuality of remedies?

Accepted Answer

To ensure that both parties to a contract have access to the same remedies for breach

Answer

To promote certainty and predictability in contract law

Answer

To prevent one party from obtaining an unfair advantage in litigation

Question 18

What is the potential consequence of laches on the availability of specific performance as a remedy?

Accepted Answer

It may result in the claimant being barred from obtaining specific performance

Answer

It has no impact on the claimant's right to seek specific performance

Answer

It always entitles the defendant to damages

Question 19

What is the primary distinction between an interlocutory injunction and a mandatory injunction?

Accepted Answer

An interlocutory injunction maintains the existing situation, while a mandatory injunction orders a specific action to be taken

Answer

An interlocutory injunction is granted before trial, while a mandatory injunction is granted after trial

Question 20

How did the development of equity law influence the remedy of specific performance?

Accepted Answer

Equity courts could order specific performance, overriding strict common law rules, to achieve a fairer outcome.

Answer

Equity law restricted specific performance to only the most serious breaches of contract.

Answer

Equity law had no impact on the development of specific performance.

Question 21

Which of these is NOT a general requirement for a court to grant specific performance?

Accepted Answer

The contract must be for the sale of goods.

Answer

The contract must be valid and enforceable.

Answer

The court must be able to supervise the performance.

Answer

Damages must be inadequate as a remedy.

Question 22

A court is most likely to order specific performance for the sale of which item?

Accepted Answer

A unique painting by a renowned artist.

Answer

A generic brand of coffee.

Answer

A standard model car.

Answer

A dozen eggs.

Question 23

Which scenario would generally prevent a court from granting specific performance?

Accepted Answer

The contract involves personal services.

Answer

The contract was formed in writing.

Answer

The contract is for the sale of land.

Answer

The contract involved a substantial sum of money.

Question 24

What is 'laches' in the context of specific performance?

Accepted Answer

An unreasonable delay in seeking the remedy.

Answer

Insufficient evidence of a valid contract.

Answer

The defendant's inability to perform.

Answer

Lack of consideration in the contract.

Question 25

Specific performance is more likely to be ordered when:

Accepted Answer

The subject matter of the contract is unique and irreplaceable.

Answer

The breaching party is a corporation.

Answer

The contract is for a short duration.

Question 26

What is the primary goal of specific performance?

Accepted Answer

To force the breaching party to fulfill their contractual obligations.

Answer

To punish the breaching party.

Answer

To compensate the non-breaching party for their losses.

Question 27

Which scenario is most likely to lead to a court ordering specific performance?

Accepted Answer

A contract for the sale of a rare antique.

Answer

A contract for the provision of professional services.

Answer

A contract for the purchase of a standard car.

Answer

A contract for the delivery of goods.

Question 28

Why are courts more likely to order specific performance in land sale contracts?

Accepted Answer

Land is generally considered unique and irreplaceable.

Answer

Land sales typically involve complex transactions.

Answer

Land is a valuable asset.

Answer

Land ownership is a fundamental right.

Question 29

A court may refuse specific performance if:

Accepted Answer

The contract is deemed unfair or unconscionable.

Answer

The contract has a short duration.

Answer

Both parties did not sign the contract.

Question 30

Which of the following is NOT a factor considered by courts when deciding whether to grant specific performance?

Accepted Answer

The political climate.

Answer

The likelihood of the breaching party performing.

Answer

The availability of alternative remedies.

Answer

The hardship imposed on the breaching party.