Exam 14: Specific and Agreed Remedies

Specific performance is a secondary remedy and will normally be awarded only in exceptional circumstances. The granting of specific performance is at the discretion of the courts. This discretion, however, is not unfettered and it is possible to state the well-established considerations upon which it is based. The courts recognize a number of bars to granting a claim of specific performance. Which of the following statements is false?

In which of the following situations will specific performance be granted?

Which of the following statements is true? I.If parties agree to a clause which specifies a sum payable by the contract breaker in the event of breach, the innocent party is barred from seeking specific performance. II.If the parties agree to a clause which specifies that specific performance will be awarded in the event of breach, the court must award specific performance.

Harold agrees to sell his business to Denise for £10 million. The contract specifies that Denise must pay a deposit of £5 million and that the balance must be tendered by 17 November. According to well-established custom in sale of land contracts, a 10% deposit is considered reasonable. Denise pays the £5 million deposit, but is unable to secure a loan to cover the balance from her bank. She finds another lending institution which is willing to help, but can only tender the balance of the contract price by 18 November. Harold terminates the contract for Denise's late tender. How much of the deposit can Harold retain?

An action for the agreed sum is the most common claim brought for breach of contract. Although it is a monetary claim, it is distinguishable from a damages claim for breach of contract in several ways. Which of the following statements is false?

Clauses which determine the sum payable by the contract breaker in the event of breach are only enforceable if the sum stipulated is a genuine pre-estimate of the loss likely to be caused by the breach.