Final answer:
Equitable remedies for breach of contract include specific performance, injunction, and rescission and reformation, all of which are crucial for enforcing contractual rights and underpinning economic growth.
Step-by-step explanation:
In the case of a breach of contract, the legal system provides several equitable remedies to enforce contractual rights based on property rights. Three such remedies include:
- Specific performance - compels a party to execute the contract as agreed, particularly when monetary damages are inadequate.
- Injunction - a court orders a party to do or refrain from doing specific acts.
- Rescission and reformation - allows for the cancellation of the contract or its reformation to reflect the true intent of the parties.
Without these remedies and a legal system that enforces contracts, engaging in transactions would pose a significant risk due to potential non-payment, thereby stunting economic growth.