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Taylor & Taylor: Contract Law Directions

Chapter 12 Question 4

Question

Specific performance should be the primary remedy for breach of contract. Discuss.

Answer

This is how you might plan your essay, paragraph by paragraph (take about 5-10 minutes for this in an exam, depending on how long you have to answer the question):

Paragraph 1 - Current Law

Primary remedy is damages - aim is to put C in position as though contract performed (protect expectation interest) - limits to this e.g. duty to mitigate loss and remoteness rules. Specific performance is secondary remedy available at courts discretion - limited to where damages are inadequate - other limits e.g. personal contracts, supervision, mutuality, etc.

Paragraph 2 - Justification

Two reasons:

  1. Damages encourage efficient breach e.g. breach contract and provide service to person who values service more.

  2. Damages contain duty to mitigate loss so C encouraged to put himself in the position as though contract performed - parties move on quickly from a breach - specific performance encourages C to do nothing and rely on court to bring him to position of full performance.

Paragraph 3 - Compelling justification?

Not really - aim of damages is to put C in position as though contract performed but the most obvious way of doing this is to order specific performance - currently damages do not accurately compensate lost performance even if they do provide efficient and quick solution to breach.

Paragraph 4 - Improvements

Damages need to match performance more accurately - e.g. 'consumer surplus cases' Ruxleygive cost of cure to more accurately reflect performance consumer bargained for? Skinner already gives damages for non-pecuniary loss - more accurately compensates for lost performance.

Paragraph 5 - Conclusion

Aim of contract law to protect performance - damages appropriate as primary remedy because of incentive provided by duty to mitigate and efficient breach theory - despite specific performance being the more obvious choice for protecting performance.