What are the typical equitable remedies in contract disputes, and when is specific performance ordered?

• A. Specific performance is never used; only monetary damages are available.
• B. Injunctions are not considered equitable remedies in contract disputes.
• C. Rescission is the only equitable remedy used in contract disputes.
• D. Specific performance, injunctions, rescission; specific performance is ordered when monetary damages are inadequate and the subject matter is unique.

Answer: (D)

Equitable remedies in contract disputes include specific performance, injunctions, and rescission. Specific performance is a court order demanding that the party fulfill the exact terms of the contract, and it’s typically used when monetary damages would be inadequate and the subject matter is unique or irreplaceable—like a contract to transfer a specific piece of real estate or a one-of-a-kind item. Injunctions prevent or halt conduct to avoid breach, providing relief when money cannot stop the harm. Rescission cancels the contract and restores the parties to their pre-contract positions, often for misrepresentation, mutual mistake, or other grounds that make the contract voidable. The correct answer reflects this trio of remedies and the condition for ordering specific performance: damages alone are insufficient when the subject matter is unique. The other choices misstate the landscape— monetary damages aren’t the only remedy, injunctions are indeed equitable remedies, and rescission isn’t the sole equitable remedy.