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Case 2-2 Contex Homes Corp. V. V. Boag Questions and Answers

Case 2-2 Contex Homes Corp. V. V. Boag Questions and Answers

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Page 1: Case 2-2 Contex Homes Corp. V. V. Boag Questions and Answers

Case 2-2Contex Homes Corp.V. V. BoagQuestions and Answers

Page 2: Case 2-2 Contex Homes Corp. V. V. Boag Questions and Answers

1. What are the claims of the plaintiff in this case?

Page 3: Case 2-2 Contex Homes Corp. V. V. Boag Questions and Answers

Specific performance for the Boags to purchase the apartment on the terms agreed upon, or, alternatively, payment of the liquidated damages which, in its opinion, should be $6,870 in addition to the $525 deposit already paid.

Page 4: Case 2-2 Contex Homes Corp. V. V. Boag Questions and Answers

2. On what grounds does the plaintiff base its claim (s)?

Page 5: Case 2-2 Contex Homes Corp. V. V. Boag Questions and Answers

The subject matter of the contract is the purchase of real property (不动产) . For disputes arising out of real property sales the equitable relief of specific performance is available.

Page 6: Case 2-2 Contex Homes Corp. V. V. Boag Questions and Answers

3.What is the rationale for equitable remedies in general?

Page 7: Case 2-2 Contex Homes Corp. V. V. Boag Questions and Answers

Equitable remedy is granted where the remedy at law is inadequate.

Page 8: Case 2-2 Contex Homes Corp. V. V. Boag Questions and Answers

4. What is the rationale for specific performance in cases where the buyer of real property is the plaintiff?

.

Page 9: Case 2-2 Contex Homes Corp. V. V. Boag Questions and Answers

Real property is unique, i.e. if seller breaches the contract, it is unlikely that the buyer will get an identical piece from elsewhere. That is the rationale for specific performance in real estate transactions.

Page 10: Case 2-2 Contex Homes Corp. V. V. Boag Questions and Answers

5. What is the rationale for specific performance in cases where the seller of real property isthe plaintiff?

Page 11: Case 2-2 Contex Homes Corp. V. V. Boag Questions and Answers

The rationale is mutuality, which means that if buyer can have specific performance in the event of seller’s default, seller should also have the remedy of specific performance if buyer defaults.

Page 12: Case 2-2 Contex Homes Corp. V. V. Boag Questions and Answers

6. Is the remedy of specific performance applicable in this case? Why or why not?

Page 13: Case 2-2 Contex Homes Corp. V. V. Boag Questions and Answers

No. Because the apartment the buyer has agreed to buy is not unique. There are thousands of almost identical apartments put up for sale by the developer. The developer uses model units in much the same way sellers of personal property use samples. In fact the apartments have many characteristics of personal property ( personal estate 个人财产, 动产)

Page 14: Case 2-2 Contex Homes Corp. V. V. Boag Questions and Answers

7. What is the opinion of the court with regard to the second count (诉讼理由,争论点) of plaintiff's claim?

Page 15: Case 2-2 Contex Homes Corp. V. V. Boag Questions and Answers

The court here dismissed the second count of plaintiff’s claim, which was for the payment of the $6,870 as liquidated damages, because the contract clause provided that money already paid at the time of default should be regarded as payment of liquidated damages. the $6,870 check was not “money already paid at the time of default”, because default occurred at the time when the defendant stopped payment on the check, and the only money already paid at that time was the $525 deposit.

Page 16: Case 2-2 Contex Homes Corp. V. V. Boag Questions and Answers

8. What has the seller to prove in seeking specific performance of a real estate contract?

.

Page 17: Case 2-2 Contex Homes Corp. V. V. Boag Questions and Answers

He has to prove that without specific

performance, he would suffer at an economic injury for which no remedy at law would be adequate, or that equitable considerations would require that remedy of specific performance be granted .

Page 18: Case 2-2 Contex Homes Corp. V. V. Boag Questions and Answers

9. Translate: "While the inadequacy of the damage remedy suffices to explain the origin of the buyer's right to obtain specific performance in equity, it does not provide a rationale for the availability of the remedy at the instance of the seller of real estate."

Page 19: Case 2-2 Contex Homes Corp. V. V. Boag Questions and Answers

违约补偿金不够, 这一点已足以说明购买方为什么有权获得实际履行这种衡平救济, 但不能成为不动产的卖方获得这种救济的理由 .