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Under the doctrine of specific performance in Canadian contract law, when might a court order the completion of a real estate transaction despite one party's attempt to breach?

Correct Answer

A) When the buyer shows damages are inadequate because the property is unique

Specific performance is an equitable remedy ordered only when money damages would not adequately compensate the innocent party. Since Semelhago v. Paramadevan (Supreme Court of Canada, 1996), real estate is no longer presumed to be unique; the party seeking the order must show the property is unique to them, meaning a substitute is not readily available.

Answer Options
A
When the buyer shows damages are inadequate because the property is unique
B
Only when the property value has increased significantly since the agreement was signed
C
Only in commercial real estate transactions over $1 million
D
When both parties agree in writing to court intervention

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Key Terms

specific performanceSemelhago v. Paramadevanequitable remedyinadequate damagesunique property
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