Equitable Remedies

Question 1

Specific performance is awarded

Answer 1

ONLY when monetary damages are considered inadequate to compensate the injured party (e.g., transactions involving unique goods like art or custom-made items).

Specific performance is presumptively available for real estate transactions. Specific performance is presumptively NOT available for contracts of personal service (injunctive relief is more common in these instances).

Question 2

Rescission is

Answer 2

the cancelling of a contract so as to restore the parties to the positions they had before the contract was made.

Question 3

Parties may seek to rescind a contract for a variety of reasons, such as

Answer 3

mutual mistake, fraud, misrepresentation, or even unilateral mistake if the other party knew or should have known about the mistake. Rescission can also occur by the mutual agreement of the parties.

Question 4

Right of Reclamation (aka Replevin)

Answer 4

Under the UCC, a seller may reclaim the goods she sent to a buyer if either of the following circumstances apply:

Insolvent Buyer.

Bad Checks.

Question 5

When an insolvent buyer receives goods on credit, and the seller learns that the buyer is insolvent, the seller may

Answer 5

reclaim the goods if a demand is made within 10 days after the buyer’s receipt of the goods. However, the 10-day limitation does NOT apply if the buyer misrepresented his solvency to the seller in writing within three months before delivery.

Question 6

If the buyer pays with a check that is subsequently dishonored, then the seller may

Answer 6

reclaim the goods following a demand made within a reasonable time.