General Equity Corporation “The Birth of Industry”

Question # 4: General Equity Corporation enters a contract with Nancy, a local artist, to create a mosaic of her famous painting “The Birth of Industry” to be set into the floor in the entrance hall of the new corporate headquarters. Nancy delays and then eventually refuses to perform the contract. In the meantime, General enters a contract with Ideal Investments, Inc. to sell the new building to Ideal. Before the sale of the building is complete, Jewel Funds, Inc. offers General a higher price for the new building and General refuses to honor the contract with Ideal Investments. General brings a lawsuit against Nancy for her breach of contract and seeks the remedy of specific performance. Ideal, after successfully enjoining the sale of the building to Jewel Funds, brings a lawsuit against General seeking a court order compelling General to complete the sale to Ideal. In your answer, discuss whether or not a court would grant the plaintiff’s request for the remedy of specific performance in each case. If you conclude that a court would not grant the remedy of specific performance in either case, discuss what the measure of damages might be available to the plaintiff in that action.

 

 

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