A contract is an agreement between two or more parties when they want to achieve something. It can either be oral or written, but both are enforceable. However, in certain situations either one or both parties fail to fulfill their promises as made in the contract. This situation is known as the breach of contract and it is punishable by law depending on how the contract was formed and the circumstances for breach. What follows in this memo are the possible causes of action for breach of contract between Candie Cardigan and Pearl and the specific performance.
Existence of a Contract
A contract existed between Cardigan and Pearl as a result of auctioning the giraffe print dress. By auctioning something, the auctioneer and the customer with the highest bid form a contract that what is being auctioned should be sold to the one with the produces the highest amount (Smith, 1997). Since Pearl had a higher bid than Jade, it was clear that she was supposed to get the dress. Besides, Cassie the auctioneer smiled and nodded at her implying that she accepted her amount of $8,500 for the dress. Therefore, refusing to take Pearl’s money an selling the dress to Jade instead is a breach of contract.
Remedies for Breach of Contract
The plaintiff has authority to pursue a variety of options since it is clear that Cardigan breached the contract. Some possible remedies include specific performance and damages. In specific performance, monetary damages are inadequate like the case of Cardigan and Pearl (Cabrelli, 2016). In such a situation, plaintiff should take the defendant to court whereby the court will force Cardigan to perform the specific contract terms that has not yet been performed. As for damages, the plaintiff may have suffered some financial losses as a result of the other party’s breach of contract. For instance, if Cassie had sold the dress to Pearl as agreed, Pearl would not have gone for an attorney’s assistance which is of course costly. This implies that the financial damage happens to Pearl as a result of the defendant’s breach of contract and she must be compensated for it.
Nonetheless, the defendant may come up with defenses such as: the existence of a unilateral mistake, where Pearl is blamed to have mistakenly thought Cassie Cardigan had accepted to sell the dress to her yet Jade had a higher bid of $500 higher than Pearl’s. In this case, the court cannot enforce the contract between Cardigan and Pearl. Impossibility may also apply where the defendant claims it would be impractical or impossible selling the dress at a lower bid while the other customer placed a better bid than $8,500 (Smith, 1997).
Therefore, contracts can be formed and become enforceable by the court. However, breaches do occur and there are possible remedies and defenses. Pearl can claim for damages and specific performance, while Cardigan can come up with defenses of unilateral mistake and impossibility. The court, can therefore, decide based on the arguments.
Cabrelli, D. (2016). Liability and Remedies for Breach of the Contract of Employment at Common Law: Some Recent Developments. Industrial Law Journal, 45(2), 207-219.
Smith, S. A. (1997). Performance, Punishment and the Nature of Contractual Obligation. Modern Law Review, 60(3), 360.