Specific Performance Part 1
Specific Performance Part 1
SEMESTER II
ACADEMIC YEAR (2019-2020)
SPECIFIC PERFORMANCE
PART I
Dr Sharon B. Le Gall
No.3
Learning Objectives
By the end of this topic, students will be able to
• Recall and explain the circumstances in which a decree of specific
performance may or may not be made.
• Recall and explain the defences to an application to the court for an order of
specific performance.
• Apply the principles on which a grant of specific performance may be made
to resolve legal disputes.
INTRODUCTION
Nature of the remedy
The remedy of specific performance consists of an order of the court directing a
party to a contract to perform his/her obligations thereunder according to its terms.
Lord Selborne LC in Wolverhampton and Walsall Rly Co v. London and North Western
Rly Co (1873) LR 16 Eq 433 at 439 said that the remedy of specific performance
‘presupposes an executory as distinct from an executed agreement, something
remaining to be done, such as the execution of a deed or a conveyance, in order to
put the parties in the position relative to each other in which by the preliminary
agreement they were intended to be placed.’
1See Meagher, Gummow & Lehane’s, Equity – Doctrines & Remedies, 4th ed. (Meagher, Heydon &
Leeming, eds.) (Australia: Butterworths LexisNexis, 2002) at p.652.
Specific Performance
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Land is treated very differently from goods, because no two pieces of land are
identical and may have a particular value to the purchaser or lessee. Land is
property that has a fixed location and a special value, and ordinarily at least
damages are not to be regarded as an adequate substitute for the right either to
acquire or dispose of an interest in it: Adderley v. Dixon (1824) 1 Sim.& St. 607, 57
ER 239 at p.241.
Where the necessary conditions are satisfied, the court will therefore almost
invariably decree specific performance of a contract regarding land, even if the
interest to be granted is no more than a licence of short duration; and where the
contracting parties are within the jurisdiction, this willingness to decree specific
performance extends even to land out of the jurisdiction: Penn v. Lord Baltimore
(1750) 1 Ves. Sen. 444.
Note that the court will not interfere in favour of one party alone. The vendor
or lessor can maintain an action for specific performance as well as the purchaser or
lessee.
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When a contract in question does not concern an interest in land it should not be
thought that different principles apply; and there is an increasing tendency to order
specific performance of agreements relating to chattels and other personalty.
‘In the majority of cases the court will not decree specific performance with regard to
personal chattels, because in the majority of those cases the remedy at law is sufficient. But
this court applies the same general equity to all contacts, and will decree specific
performance as to chattels in those cases where the damages which might be recovered in a
court of law are not a sufficient remedy’: New Brunswick and Canada Ry. And Land Co. v.
Muggeridge (1859) 4 Drew. 686 at p.698; 62 E.R.263 at 267.
Sometimes, for example, the particular chattel to be sold has special qualities,
as is the case with a painting or other article that the plaintiff wishes to obtain in
view of its special characteristics or any document of special importance beyond the
value that might be established in an action for damages, or indeed with any article
such that no other article at a sufficiently definite price is readily obtainable that is
similar in all material respects: Falcke v. Gray (1859) 4 Drew. 651, 62 E.R. 250
(concerning two china vases); Sky Petroleum Ltd. v. V.I.P. Petroleum Ltd. [1974] 1
W.L.R. 576 (concerning supply of petrol and diesel for 10 years during the oil crisis
where an interlocutory injunction restraining breach had the effect of compelling
the defendant to supply the petrol and diesel).
It has not yet been clearly laid down what matters are sufficient to establish
that a particular item has a special value and it should be remembered that the
adequacy of damages depends upon the precise circumstances in question and that
a decision in one case does not govern the facts of a different case.7
7See I.C.F. Spry, The Principles of Equitable Remedies 7th ed. (Australia, UK, Canada: Law Book Co.,
Sweet & Maxwell, Carswell Co., 2007), at p.65.
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If however, the shares or stock are readily obtainable, damages may provide
an appropriate remedy.9
p.664.
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It was stated in Snell that ‘the personal services rule [though still an
important general principle] is not inflexible and in recent years a number of
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exceptions have been recognised.’13 In C H Giles & Co. Ltd. v. Morris [1972] 1
W.L.R. 307, a distinction was made between an order to perform a contract for
services and an order to procure the execution of such a contract. The mere fact that
the contract to be made is one of which the court would not order specific
performance, such as the service agreement as managing director of a company, is
no ground for refusing to decree that the contract be entered into. In Giles, the
defendants were properly ordered to procure the execution of the service
agreement.
See also Posner v. Scott-Lewis [1987] Ch 25, and Mervyn Davies J. at pp.33-34.
(In Posner, like C H Giles (above) the court decided that that case involved the
specific enforcement of a clause which required the execution of an agreement for
the provision of services of a resident porter and not the specific enforcement of the
performance of those services of a resident porter).
Cf. Ryan v. Mutual Tontine Westminster Chambers Assoc. Ltd. [1893] 1 Ch.
116 and Lopes, L.J., at p.125. (In the Ryan case, the court felt that the contract to
employ a porter and the requirement that the porter should carry out specified
services were actually one indivisible contract, thus the court refused to enforce the
part of the contract that required the appointment of a porter since it could not
enforce the other aspect of the contract which required the performance of certain
services by that porter.)
Contracts of employment
The principle that an employee will not be compelled to perform a contract of
employment is based on the courts’ refusal to endorse anything that smacks of
slavery (see De Francesco v Barnum (1890) 45 Ch. D.430). Further, specific
performance of the employer’s obligations under the employment contract would
not traditionally be enforced on the basis that mutual trust and confidence is
required in the employment relationship and cannot be forced if it has broken
down: see Johnson v Shrewsbury and Birmingham Rly Co (1853) 3 De. G.M. & G. 914,
where Knight Bruce L.J. said
‘We are asked to compel one person to employ against his will another as his confidential
servant, for duties with respect to the due performance of which the utmost confidence is
required. Let him be one of the best and most competent persons that ever lived, still if the
two do not agree, and good people do not always agree, enormous mischief may be done.’
13 ibid., at p.477.
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to join a union, the employee was granted an interim injunction restraining the
employer from implementing the notice, even though this amounted to indirect
(albeit temporary) specific performance: see Hill v. C.A. Parsons & Co, (below)
where the claimant was a senior engineer in the employment of the defendant. In
May 1970 a trade union successfully introduced a closed shop, under which it
became a term of employment that all the defendant’s employees were to be
members of the union. The claimant refused and received a month’s notice of
dismissal. He obtained an interlocutory injunction restraining the termination. The
circumstances were special in that the notice was short and the employee and
employer retained their mutual confidence. Denning MR remarked that in granting
the injunction in such a case, the court is indirectly enforcing specifically a contract
for personal services.
In summary, the reasons commonly put forward for the above rules are
partly the difficulty of supervision and partly the undesirability on grounds of public
policy of compelling persons to continue personal relations with each other against
their will. According to Pettit, at p.658, Fry LJ put the latter reason rather
dramatically in De Francesco v. Barnum (1890) 45 Ch D 430 saying that the courts
would not want to turn contracts of service into contracts of slavery. Damages are
normally considered to be an adequate remedy and there may be some difficulty of
reinstatement where the dismissed employee has been replaced.
In C H Giles & Co Ltd v. Morris [1972] 1 All E R 960 at 969, Megarry J stated
that the reasons for refusing to order specific enforcement of employment contracts
or contracts for personal services are more firmly rooted in human nature and
speculated on the effect of a decree of specific performance of a contract to sing. If a
singer contracts to sing, there could no doubt be proceedings for committal, if
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ordered to sing, the singer remained dumb. If, however, the singer sang flat or too
sharp or too fast or too slow… who could say whether the imperfections of the
performance were natural or self induced? To make an order with such possibilities
of evasion would be vain and so the order will not be made.14
Spry at pp.120-121 deals with the exceptions to the general principle in the
following manner. He states that
‘for contracts of employment the policy against specific performance is particularly strong
and can be outweighed only by very exceptional circumstances. Such circumstances are
more readily found where a relationship of mutual confidence subsists between the parties.
So specific performance has been awarded in a case where both the employer and the
employee wished the employment to be continued, but the employer had been coerced by a
union [Hill v. C.A. Parsons & Co. Ltd] Further, it has been held that where a dispute resolution
procedure is laid down in a contract of employment, the parties may be required to adhere
to that procedure. Further, special considerations arise where the contract is governed by
legislative or regulatory provisions that provide that the employment should be
maintainable by one party or by both parties or where it is sought to restrain the wrongful
exclusion of a person from an office [K.D. Ewing [1993] Cambridge Law Journal 405].
Further, a different position arises where two persons agree that one of them will keep an
office or employment filled, by for example employing a suitable person from time to time,
such as a caretaker manager; for in these circumstances it may be appropriate to order
specific performance of the agreement even although the contract of employment of the
other person is not itself enforceable in specie [Posner v. Scott- Lewis (supra) cf Ryan v.
Mutual Tontine (supra)]. Further, if an agreement to employ is merely an element of a
larger contract, for the remainder of which specific performance is appropriate, the most just
course may be to order specific performance of the contract in its entirety, even although if
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the agreement to employ had stood alone its performance would not have been enforced in
specie [C.H.Giles & Co. Ltd v. Morris 1 W.L.R 307 at 317-318].’
Partnerships
Courts of equity do not ordinarily enforce by orders of specific performance, the
maintenance of partnerships. Giffard VC stated in Scott v. Rayment (1868) L.R. 7
Eq.112 at p.115 that ‘I do not hesitate to say, that as a general rule the court will not
decree specific performance of an agreement to perform and carry on a partnership.
There may be exceptions, but very limited exceptions, to that rule, such, for instance,
as the court going the length of decreeing the execution of a deed.’ The
considerations underlying this rule are not merely based on difficulties of enforcing
the rights of the parties, for the refusal to intervene also depends on the
undesirability, as a matter of policy, that unwilling persons should, despite their
opposition, be obliged to maintain confidential and intimate relationships.
Exceptional circumstances may warrant a decree of specific performance similar to
those relating to contracts of employment.15
‘The circumstances of any breach that take place may alter from day to day, and if specific
performance of such a contract were ordered the constant superintendence of the court
would be required. Such superintendence cannot be given, and this is a sufficient ground
why the court cannot grant specific performance.’
Blackett v. Bates (1865) L.R.1 Ch. App. 117 (maintenance of a railway); Joseph v.
National Magazine Co. [1959] Ch. 14; Re C (A Minor) [1991] 2 F.L.R.168
(schooling). The reason is that supervision would be impracticable. Equity does
nothing in vain; and will not issue orders which it cannot be certain to enforce.16
Spry suggests that the courts have gradually resiled from an inflexible
position that a court of equity will not as a rule, enforce contracts of personal service
or any other contract the execution whereof would require continued
superintendence by the court. According to Spry, the better view can be stated as
follows:
‘In ordering specific performance the court bears in mind that applications may later be
made to it for the enforcement of its order or for the further definition of the obligations of
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the parties; in very exceptional cases obligations under a contract may be so complex or
unclear that they lead the court to conclude either that it would burden itself excessively if it
ordered specific performance, in view of the prospect that subsequently it would be required
from time to time to define the obligations of the parties or else would be required to
determine from time to time whether complex or imprecisely defined obligations have been
performed, or else that it would involve undue hardship on the defendant to require him to
perform terms which are complex or burdensome or are not clearly defined and in breach of
which he might find himself liable to the process of the court on the ground of contempt.
Questions of degree are involved, and the preparedness of the court to order specific
performance in cases involving difficulties of these kinds depends on such considerations as
hardship and prejudice to the parties and especially on the extent to which the plaintiff will
be prejudiced if he is confined to damages. Not unnaturally, in borderline cases it may be
difficult to determine in which way the discretion of the court should be exercised. The court
may, where appropriate, require further information to be provided in order to enable
difficulties of performance or enforcement to be assessed.17
Hanbury & Martin at p.763 (like Spry) suggest that an important question is
whether there is a sufficient definition of what has to be done in order to comply
with the order of the court: Tito v. Waddell (No.2) [1977] Ch.106 at 322, per
Megarry VC. In Posner v. Scott-Lewis [1987] Ch 25; (1987) 46 C.L.J.21 (G. Jones)
a lease contained a landlord’s covenant to employ a resident porter, whose duties
were to clean the common parts, to look after the heating and to carry rubbish to the
dustbins. Specific performance of this covenant was granted to procure the
appointment of a porter (the earlier decision to the contrary in Ryan v. Mutual
Tontine Westminster Chambers Association [1893] 1 Ch 116 was difficult to
distinguish and the authority of which has been weakened by later decisions such as
Giles (C.H.) & Co. Ltd. v. Morris [1972] 1 W.L.R.307 at 318; Shiloh Spinners Ltd. v.
Harding [1973] A.C. 691 at 724; Tito v. Waddell (No.2) [1977] Ch. 106 at 321).
Relevant questions are (1) was there a sufficient definition of what had to be
done? (2) would an unacceptable degree of superintendence be involved? (3) what
would be the respective hardship to the parties if the order was made or refused?
The answer to these questions supported a grant of specific performance in Posner;
the remedy of damages being inadequate.18
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Hanbury & Martin state that ‘as in the analogous sphere of mandatory
injunctions, it was not in the public interest to require the carrying on of a business
at a loss if there was some other plausible means of compensation…The decision
was broadly welcomed in view of the undoubted difficulties of supervision, but
another view is that the House of Lords failed to liberalise the principles of specific
performance and to grant an effective remedy to a landlord who was likely to be
‘short-changed’ by any award of damages.’19
Construction cases
The court does not, as a rule, order specific performance of a contract to build or
repair (see Haywood v. Brunswick Building Society (1881) 8 Q.B.D.403), but there are
exceptional cases. See Wolverhampton Corp v Emons [1901] 1 K.B. 515, per
ROMER L.J., at pp.524-525, as follows:
‘The question, which is not free from difficulty, is whether, under the circumstances of this
case, an order for specific performance should be made in favour of the plaintiffs. There is no
doubt that as a general rule the Court will not enforce specific performance of a building
contract, but an exception …[to] the rule has been recognised. It has, I think, for some time
been held that, in order to bring himself within that exception, a plaintiff must establish
three things. The first is that the building work, of which he seeks to enforce the
performance, is defined by the contract; that is to say, that the particulars of the work are so
far definitely ascertained that the Court can sufficiently see what is the exact nature of the
work of which it is asked to order the performance. The second is that the plaintiff has a
substantial interest in having the contract performed, which is of such a nature that he
cannot adequately be compensated for breach of the contract by damages. The third is that
the defendant has by the contract obtained possession of land on which the work contracted
is to be done. The rule on this subject is stated by Fry L.J. in his work on Specific
Performance, 3rd ed. pp. 44, 45, in substantially the same terms as those in which I have just
stated it. The question is whether the plaintiffs in this case have brought themselves within
the exception so stated. In my opinion they have.’
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‘Unfortunately there has been a tendency…to seek to explain particular cases where specific
performance is granted by reference to more specific subsidiary rules, which are said to have
crystallized general equitable principles and to have rendered then pro tanto [to that extent]
more restricted. [This was the case, for example, in Wolverhampton Corporation v.
Emmons [1901] 1 K.B.515 and others] Nonetheless the formulation of subsidiary inflexible
rules, which is so often availed of in courts of law, is peculiarly ill-fitted to the practice of the
courts of equity, which are concerned with general application of fundamental discretionary
considerations. It is not surprising that none of the particular rules that it has …attempted to
set up as applicable to building cases has been found to be satisfactory; and it is accordingly
necessary …to resort to general principles.’
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‘Ordinarily the Court will not enforce specific performance of works, such as building works,
the prosecution of which the Court cannot superintend; not only on the ground that damages
are generally in such cases an adequate remedy, but also on the ground of the inability of the
Court to see that the work is carried out: Blackett v. Bates; Powell Duffryn Steam Coal
Company v. Taff Vale Railway Company. An exception to this rule has been established in
cases where a railway company has taken lands from a landowner on the terms that it will
carry out certain works. In those cases, because damages are not an adequate remedy, the
Court has gone to great lengths, and has granted specific performance of the definite works
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— they must be definite works — which the company that has taken the lands has
contracted to do.’
Therefore, where a railway was built through a farmer’s land and the railway
company undertook to provide a bridge or tunnel to connect the separated parts of
the farmer’s land, it would have been most unjust to leave the farmer to a remedy in
damages.
Condition 3: This condition, namely that the defendant has by the contract
obtained possession of land on which the work is contracted to be done, should not,
according to Spry, p.117, be regarded as a general requirement, and is really a single
example of the second condition, that is, that damages will be an inadequate
remedy. This condition, according to Hanbury & Martin, at pp.765-766, has been
extended in Carpenters Estates v. Davies [1940] Ch.160 where Farwell J. held that it
was sufficient that the defendant was in possession of the land, whether he came in
by the contract or not. The defendant’s possession is a material factor for the
claimant cannot then enter to perform the construction or repair work
himself/herself, although Spry, at p.117, suggests that the preferable view is that
specific performance may be appropriate even where the defendant does not have
possession of the land on which the building work is to be carried out.
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damages would be adequate compensation for his loss. He can obtain specific
performance under the principle of mutuality.’22
Also, in Price v. Strange (supra), if the defendant has stood by and allowed
the claimant to carry out an appreciable part of the contract, he will have created an
equity which disables him from asserting want of mutuality; and if the defendant
has himself performed part of the claimant’s obligations (for example, to do building
work), the claimant may nonetheless obtain specific performance subject to a
financial adjustment to compensate the defendant.
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claimant was living in consideration of the claimant executing certain repairs to the
interior and exterior of the building in which the maisonette was situated. The
claimant completed the interior repairs, but was not allowed to carry out the
external repairs because the defendant repudiated the agreement and had the
exterior repairs done at her own expense, nevertheless accepting rent at the
increased rate for some months. The claimant’s specific performance action was
dismissed at first instance on the ground that the remedies were not mutual at the
date of the contract, since the claimant’s obligations to execute the repairs could not
be specifically enforced. The decision was unanimously reversed by the CA where
Buckley LJ stated
‘The time at which the mutual availability of specific performance and its importance must
be considered is, in my opinion, the time of judgment, and the principle to be applied can, I
think, be stated simply as follows: the court will not compel a defendant to perform his
obligations specifically if it cannot at the same time ensure that any unperformed obligations
of the plaintiff will be specifically performed, unless, perhaps damages would be an adequate
remedy to the defendant for any default on the plaintiff’s part.’
Although all the agreed repairs had been done, they had not been done by the
claimant. It was held that the claimant should nevertheless succeed for the failure of
the claimant to do the work was not due to any default of his, but to the defendant’s
unjustified repudiation of the contract. It was only equitable, however, that specific
performance should be ordered on terms that the claimant should pay the
defendant proper compensation for the work done by her: see Price v. Strange
(supra)
Divisibility of contracts
The general rule, as stated in Merchant’s Trading Co v. Banner (1871) LR 12 Eq 18 at
23 is that a contract cannot be specifically performed in part; it must be wholly
performed, or not at all.
Suppose that a contract contains two terms, under one of which X is obliged
to perform an act for which, taken by itself, specific performance would be an
appropriate remedy, and under the other he is obliged to do an act of a personal
nature, for which it is not. Here the rule, mentioned above, as stated in Merchant’s
Trading Co v. Banner (1871) LR 12 Eq 18 at 23, is that a contract cannot be
specifically performed in part; it must be wholly performed, or not at all. In Ogden v.
Fossick (1862) 4 De GF & J 426, an agreement was entered into between Fossick
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and Ogden that Fossick should grant Ogden a lease of a coal wharf at a certain rent
and should be employed throughout the tenancy at a salary of £300 per annum plus
a commission on the coal sold at the wharf. Although the first part of the agreement
was typical of matter of which specific performance is decreed, this remedy was
refused on the ground that it was inseparably connected with the second part of the
agreement which was clearly of the kind of which specific performance is not
granted. It is an a fortiori case where the term sought to be enforced by specific
performance (and which can be enforced by specific enforcement) is merely an
ancillary or subsidiary term of a contract, the principal (or main) terms of which are
unenforceable by specific performance: South Wales Rly Co v. Wythes (1854) 5 De
GM & G 880; Brett v. East India and London Shipping Co Ltd (1864) 2 Hem & M 404.24
Again, where some of the terms of an agreement are legal and the others are
illegal, the court will sometimes specifically enforce the terms which are legal if the
illegal terms are clearly severable, although serious illegality will taint the whole
agreement and prevent severance.25
Although it was said in a number of early cases that courts of equity will not
order specific performance of part only of a contract, this limitation has no basis in
principle, and it is now accepted that in a number of diverse circumstances partial
enforcement in specie is appropriate. In such cases legal or equitable damages may
usually be obtained in respect of the unperformed, non-specifically enforceable
terms. (Spry, p.109)
Impossibility of performance
There is a distinction between cases where performance is impossible and cases
where performance would be futile. Questions of impossibility of performance arise
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where there is a prospect that it will not be within the power of the defendant to
comply with the proposed order of the court. The impossibility of performance of
one term of a contract may, in some cases, be seen as a matter of construction to
involve a failure of a condition precedent to obligations to perform some or all of the
remaining terms, and here it is not by reference to any special equitable doctrine
that specific performance will be refused, but simply by reason of the absence of the
material contractual obligations.27
Nevertheless, it is clearly established that the courts will not require that to
be done which cannot be done: see Ferguson v. Wilson (1866) L.R. 2 Ch.77 where an
application to the court for specific performance of the allotment of shares of a
company could not be granted because all available shares were already allotted at
the time of the application.28
Futility of performance
A court of equity will not make any order in vain or in the context of a decree of
specific performance, a court of equity will not make such an order if performance
would be futile. So it has been said that where there is a contract to execute a
partnership deed, and the partnership is determinable at will, specific performance
will be refused, since if a deed were executed, the defendant nonetheless would be
able to dissolve the partnership forthwith, and specific performance would not
therefore be more substantially advantageous than damages at law: Hercy v. Birch
(1804) 9 Ves.357, 32 ER 640. (Note the counter arguments in Spry, pp.134-135)
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Spry, at p.57 states that ‘the fundamental principle that underlies this
restriction is that courts of equity have not regarded the mere giving of a promise by
the defendant as itself creating a situation where it would be unconscionable that
the promise should not be performed. It is the provision of something of value that
renders a failure to perform so unconscionable that enforcement may be obtained in
specie if it is otherwise appropriate.’ Courts of equity have found it to be, in general,
appropriate to adopt as a criteria of the sufficiency of consideration for the purposes
of proceedings for specific performance, the criteria of the sufficiency of
consideration adopted by courts of law.
As at law and in equity, the lack of consideration of the required nature is one
thing, but the extent or value of consideration is altogether another thing. Provided
that what has been given or promised is something that is of value so as to amount
to consideration at law, specific performance will not be denied in equity merely
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Resources
Hanbury & Martin, Modern Equity – Chapter 24
Hayton & Mitchell – Chapter 17 (pp.722-747)
Meagher, Gummow & Lehane’s, Equity – Chapter 20
Pettit – Chapter 28
Snell’s Equity – Chapter 17
Spry, Equitable Remedies – Chapter 3
TUTORIAL QUESTIONS
1. ‘Equity, like nature, does nothing in vain. It proceeds like “a wise parent dealing
with his children; it is best not to issue orders unless you can be absolutely sure of
effecting compliance.”’
2. ‘It is settled law that contracts which are personal in nature or which involve the
performance of personal services will not be specifically enforced.’
Discuss.
3. Cynthia entered into a lease of a flat in Woodbrook Place on the 10th floor of a
building built two years ago. The service contract requires Liftbuilders Ltd., the
landlord, to undertake external building repairs, to have the outside of the windows
cleaned once a month, and to install an elevator within a reasonable period of time.
A recent tropical storm dislodged parts of the roof, and rain now leaks into Cynthia’s
flat. Despite Cynthia’s requests, the roof has not been repaired. The windows are
never cleaned, and the elevator has not been installed.
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4. Quincy, an artist, agrees with Ronnie, who is fifteen years old and a well-known
calypso singer, to paint his portrait for $25,000. When the painting is complete,
Machelin, a musicologist and fan of Ronnie, offers Quincy $50,000 for the painting.
Quincy, who is ill, in need of medical care and in severe financial difficulties, accepts
Machelin’s offer.
Advise Ronnie about the availability of the remedy of specific performance against
Quincy.
5. The fee simple title of Animal Farm was vested in Gloria; but she did not reside on
the farm. She entered into an oral agreement with her son Seth, under which he was
to take up residence with his family on the farm, and work and manage the farm for
eight years. After this period, half of the farm was to be sold and transferred to him.
It was also agreed that the proceeds from the sale of the farm products were to be
paid to Gloria, who was to apply all such receipts, first, in payment of his and her
individual living expenses; and, second, in payment of the interest and principal on
the mortgage for the farm. It was also part of the agreement that Seth would have
the option to purchase the other half of the farm for the sum of $800,000 after the
eight-year period, if he so desired. In accordance with the terms of the oral
agreement, Seth and his family assumed residence on the farm. He worked and
managed the farm for two (2) years; after which period, Gloria brought an action
against him to recover possession of the farm. Seth, in his defence, filed a
counterclaim for specific performance of the agreement.
Assess the prospects of the success of Seth's counterclaim for specific performance.
22