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American Contract Law for a Global Age, 2017a

American Contract Law for a Global Age, 2017a

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Unit 26<br />

__________________________________________________________________<br />

REMEDIES<br />

Part Four<br />

__________________________________________________________________<br />

Special Remedies<br />

FOCUS OF THIS UNIT<br />

Having covered the “big three” principal measures of damages in <strong>American</strong><br />

contract law (expectancy, reliance, and restitution), along with the limitations on<br />

such damages (<strong>for</strong>eseeability, Avoidability, and certainty), we now turn our attention<br />

to what we here categorize as “special remedies.” The two remedies covered in this<br />

unit are, as you will see, more narrowly available than the big three, but they are an<br />

integral part of the toolkit of the practicing lawyer who must understand when they<br />

are and are not in play.<br />

Specific Per<strong>for</strong>mance. One type of special remedy that you have heard of<br />

elsewhere by this point is specific per<strong>for</strong>mance. This remedy is the particular<br />

contract-law application of the broader power of courts to issue injunctions—orders<br />

compelling specific action or non-action by a party, generally issued under threat of<br />

contempt <strong>for</strong> non-compliance. You may have encountered injunctive relief (or at least<br />

references to it) in other law school classes. An order of specific per<strong>for</strong>mance compels<br />

a party to do what the party promised. In a contract to buy land or goods that qualify<br />

as truly “unique,” <strong>for</strong> example, a court can order the breaching seller to per<strong>for</strong>m the<br />

deal. In much of the world, this judicially-managed remedy is preferred and is used<br />

frequently. For common-law jurisdictions like the United States, specific per<strong>for</strong>mance<br />

is disfavored and applicable only in certain qualifying situations. Be aware that some<br />

courts discussing specific per<strong>for</strong>mance do so with little or no use of the term “specific<br />

per<strong>for</strong>mance.” If, however, a court is evaluating a party’s request <strong>for</strong> an injunction<br />

and the injunction is one that would order a breaching party to per<strong>for</strong>m its<br />

contractual obligations, then the underlying issue is one of specific per<strong>for</strong>mance.<br />

Sections 357 through 369 of the Restatement (Second) of <strong>Contract</strong>s provides<br />

some substantial detail on when specific per<strong>for</strong>mance is and is not available, and this<br />

unit addresses some of those highlights. In Uni<strong>for</strong>m Commercial Code cases, specific<br />

per<strong>for</strong>mance is sometimes available <strong>for</strong> buyers and sellers when the other side<br />

breaches. The sellers’ specific per<strong>for</strong>mance remedy is under section 2-709, which is<br />

entitled “Action <strong>for</strong> the Price.” This provision does not raise many of the concerns of<br />

______________________________________________________________________________<br />

UNIT 26: SPECIAL REMEDIES 543

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