Business Law

Class Assignment for Business Law

Question 2a) Advice Adam with respect to what remedies are available to him as a result of the breach of contract by Edwin?

Adam and Edwin are in a agreed contract to purchase a car at $500,000. The issue is what can Adam do if Edwin is to breach the contract between them, with respect to the remedies available to him in order to stop Edwin from selling the Rolls Royce to an Arabian Sheik for a higher price.

The main remedies care available to Adam are Specific Performance and Injunction. Specific Performance is a court order that asked the involved parties to carry out their obligations under the term of the contract. This remedies would enforce the contract to be carried out regardless of a better offer for the Seller. Specific performance is usually only decreed is there is no adequate remedy at law. Sullivan v. Porter, 861 A.2d 625 (2004)

Injunction Remedies is also a court order. Injunction is done to restrain a wrongful act or ordering a particular act to be done. The Mareva injunction freeze the asset of the defendant pending further order by the court. So that the Defendant would not be able to destroy the evidence which the plaintiff is likely to obtain against him. Mareva injunction is used when there is no adequate remedy at law.

Adam has the legal rights and should get a court order of Mareva Injunction against Edwin to stop him from selling the Rolls Royce to the Arabian Sheik for a higher price. Adam, the plaintiff must specify it is the Rolls Royce that he wishes to "freeze". After that, Adam can apply Specific performance toward Edwin to enforce the contract between them to make Edwin sells the car to Adam.

Based on remedies stated, Adam would be able to stop Edwin from selling the car through Mareva injunction and enforce specific performance to make Edwin sell him the car. This would stop Edwin from breaching the contract.

Question 2b) Would your advice be different if the motor vehicle...