Question

Suits for specific performance or damages and unilateral rescission are legal remedies for breach of contract. Of the following statements referring to these remedies, which is correct?

a. Specific performance is always granted.
b. Damages are the preferred remedy.
c. Unilateral rescission requires mutual agreement.
d. Specific performance is a rare remedy.

Answer 1

Specific performance and damages are legal remedies for breach of contract. Damages are the preferred remedy.

Step-by-step explanation:

Specific performance and damages are legal remedies for breach of contract. Specific performance is an equitable remedy where a court orders the breaching party to fulfill their contractual obligations. Damages, on the other hand, are a compensatory remedy where the non-breaching party is awarded money to compensate for their losses. It is incorrect to say that specific performance is always granted, as it depends on the specific circumstances of the case. However, it is also incorrect to say that specific performance is a rare remedy, as it can be granted in certain situations where monetary damages would not suffice.

Unilateral rescission refers to one party's right to cancel a contract due to the other party's breach. It does not require mutual agreement but can be exercised by the non-breaching party alone.

Therefore, the correct statement is: b. Damages are the preferred remedy.