Specific Performance Is a Secondary Remedy and Will Normally Be

question 1

Multiple Choice

Specific performance is a secondary remedy and will normally be awarded only in exceptional circumstances. The granting of specific performance is at the discretion of the courts. This discretion, however, is not unfettered and it is possible to state the well-established considerations upon which it is based. The courts recognize a number of bars to granting a claim of specific performance. Which of the following statements is false?

• A) Specific performance is always barred by the innocent party's termination of the contract.
• B) Specific performance is always barred where performance is physically impossible.
• C) Specific performance is always barred where performance involves a continuous act, such as keeping a shop open.
• D) Specific performance can be barred through delay.

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Definitions:

Straight-Line Depreciation

A strategy for allocating the outlay of a tangible asset through its service duration in equivalent yearly installments.

Straight-Line Depreciation

An accounting method that evenly spreads the expense of an asset over its expected lifespan.

Capital Budgeting

The process of evaluating and selecting long-term investments that are in line with the goal of maximizing shareholder value.

After-Tax Discount Rate

A rate used in financial calculations that represents the net cost or benefit of an investment after considering the effects of taxes.