A remedy that courts sometimes use in disputes involving a breach of contract is simply to compel the participants in the contract to do precisely what they have agreed to do. Specific performance, as this approach is called, can be used as an alternative to monetary damages—that is, to requiring the one who has violated the agreement to pay a specified amount of money in compensation for the loss that is incurred or the wrong that is suffered. But while there are some cases for which specific performance can be a better alternative than monetary damages, there are many instances in which it is clearly not a suitable remedy.
Whether or not specific performance is an appropriate remedy in a case depends on the particular characteristics of that case. It is often the only reasonable remedy when monetary damages could not adequately compensate the one who has been harmed by the breach of contract. For example, a contract may provide for one party to sell some item of personal property that is unique or of such subjective importance to the buyer that there is no way to assign an accurate financial measure of the buyer's loss in not possessing the item. When the promised seller in such a case refuses to complete the sale, the best remedy would be to order that the contract be fulfilled exactly according to its terms.
Nevertheless, in many cases monetary payment can adequately compensate for the refusal to fulfill the terms of a contract, and thus the court commonly need not consider ordering specific performance. In fact, in some types of cases, court-enforced performance of the contract would actually be detrimental to those involved in the dispute and thus should be avoided. This most often occurs when a contract calls for a service to be performed and the one who has previously agreed to perform the service now refuses to do so—especially if a contract has been broken through someone's refusal to undertake employment as promised. The most compelling reasons against enforcement of contracts in such cases have to do with the kind of coercion that enforcement would necessitate. Forcing someone to perform a service in association with, and especially under the direction of, another who has become an antagonist can, at the very least, heighten dissatisfaction and intensify psychological friction. Even if a court had the resources necessary to ensure that such a contract would be enforced according to its terms, it would often do better to avoid imposing such uncomfortable conditions. Awarding monetary compensation where possible in such cases permits the court to steer clear of entanglement in troublesome aspects of the disputed relationship while still providing relief to the wronged party.
1. Based on the information in the passage, which one of the following is most clearly an example of a court's ordering specific performance?(A) A publishing house is ordered by a court to return a manuscript to a writer after it has broken its contract for publication of the manuscript, and the contract has subsequently been nullified.
(B) A systems analyst who refuses to work for a certain company as she has contracted to do is ordered by a court to assume her contracted duties with the company, and the company is ordered to pay her the contracted salary.
(C) A building contractor who has received the full payment specified in his contract with a developer for the construction of a new mall but fails to complete the project is ordered to transfer all of the funds to a new contractor who will complete the construction.
(D) A dealer in rare antique furniture is ordered to return a contracted buyer's down payment for a chair after an expert appraiser has informed the buyer and the court that the chair's authenticity is questionable.
(E) An engineer who has agreed to work for a certain company but no longer intends to do so is ordered to pay the company for the losses it will incur as a result of the breach of agreement, but the company is not ordered to compensate the engineer.
2. Based on the passage, the author would be most likely to agree with which one of the following statements regarding cases in which someone is deemed by the court to have failed to undertake employment as contracted?(A) Often specific performance in such cases can help the courts avoid problematic involvement in difficult aspects of the cases.
(B) While specific performance costs the court less to enforce than monetary damages, the savings should be weighed against the former's negative psychological repercussions.
(C) Enforcement of specific performance by the courts in such cases would often be less than fully successful.
(D) If the person who failed to fulfill the contract also refuses to pay monetary damages, specific performance should be imposed instead.
(E) Specific performance is more often considered by the courts in such cases than in other cases involving someone's refusal to perform services.
3. The main purpose of the passage is to(A) predict the consequences of following a policy whereby a particular legal remedy becomes the standard approach
(B) argue for the implementation of a set of standards for the use of a new legal measure
(C) explain the differences among a group of interrelated legal procedures
(D) generate a set of guidelines for the evaluation of evidence in a particular type of legal dispute
(E) identify some criteria for the application of two different legal remedies
4. The passage most strongly suggests that the author would agree with which one of the following statements?(A) Courts should examine the suitability of assessing monetary damages in breach of-contract-cases before they consider ordering specific performance.
(B) Specific performance is usually the most appropriate remedy for violations of contracts to sell personal property.
(C) In general, coercive court-ordered remedies in contract violation cases arc unfair and should be avoided.
(D) Specific performance is successful at resolving disputes only when the objective value of the personal property contacted for sale is reasonably low.
(E) To provide fair enforcement of contracts, legal systems should offer disputing parties the option to use any of a number of resolution methods.
5. Which one of the following would, if true, most strengthen the author's position with regard to remedies in employment contract cases?(A) Court-ordered compensation in employment cases is often nearly impossible to enforce.
(B) All types of court-ordered remedies for contract violations entail coercion of one or more of the parties involved in the dispute.
(C) Most people who are sued for violating their agreement to undertake employment have adequate financial resources to compensate their would-be employers.
(D) The legal issues involved in employment contract disputes are for the most part very different from the legal issues involved in other disputes over contracts for performance of services.
(E) The rights of potential employees often override the monetary considerations involved in employment contract disputes.