Professional Documents
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Specific Performance
By: Laine Wagenseller
Submitted: 05:23PM on Friday 15 May 2009
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Disputes over the purchase and sale of real estate differ from other
legal disputes because the jilted party in a real estate transaction can
often ask the court to actually enforce the contract. Rather than
awarding money damages, a court can order parties to go through with the transaction. This is crucial
when a project relies on a specific location or the land under contract is part of a bigger development
project. However, an uninformed party can unintentionally impair his right to this unique remedy
if not careful. Here is what it takes to prosecute a successful Lawsuit for Specific Performance.
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payment will be by cash or cash equivalent. However, some courts have found the lack of a time for
payment in the contract to render the contract unenforceable.
The buyer paid adequate consideration and the contract was just.
In many cases, the payment of even $1 is adequate consideration. Moreover, where the seller enters
into the contract willingly, he is often presumed to have waived any argument that the price of the
deal was inadequate. Typically contracts are negotiated at arms length and their adequacy is not an
issue.
5. Lessons Learned
When a purchase and sale deal starts to unravel, seek legal advice. While the other party may have
breached the agreement, the wrong response (i.e., refusing to perform your obligations) can destroy
your chances for success on a subsequent lawsuit. Proper legal advice can also help you ascertain
your legal right to seek specific performance.
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