Analysis of Breach of Contract and Equitable Remedies Case Study

This assignment is a case study analyzing a breach of contract scenario involving an auction of a dress. The case revolves around Candie Cardigan, who, through an auction house, offered a silk satin and velvet dress for sale. Pearl made the final bid, seemingly winning the auction. However, Candie, influenced by her friendship with Jade, instructed the auctioneer to sell the dress to Jade, leading Pearl to seek legal action. The analysis explores the breach of contract, specifically highlighting how the sale to Jade, not based on the highest bid, constitutes a breach. The assignment delves into equitable remedies, such as specific performance, which Pearl could seek to obtain the dress. It further examines potential defenses Candie or the auction house might employ, such as the defense of mistake. References to legal precedents and relevant literature support the arguments presented within the case study, providing a comprehensive overview of the legal issues involved.

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Running head: BREACH OF CONTRACT
Breach of Contract and Specific Performance
Name:
Course Title:
Instructor’s Name:
Date:

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Running head: BREACH OF CONTRACT
Date:
To: Les Agne, Attorney at Law
From: (Your Name)
Re: Potential Causes of Action for Breach of Contract and Specific Performance
Introduction
Candie Cardigan, a representative for Cardiware, decided to auction her dress made of
silk satin and velvet markings. The dress has a strapless giraffe print. Pearl and Jade, who had
been looking forward to the auction, made their auction and bid but from Cassie’s nod to
Pearl, it appeared Pearl had got the dress. However, Candie and Jade being friends, Candie
instructed Cassie to sell to Jade the dress. Cassie explained that Jade had increased her bid
after Pearl’s final bid though that was not the case in reality. Pearl seeks for Candie to turn
over the dress to her.
When Pearl made the final bid in the auction of the strapless, giraffe print dress, a
contract was entered into between Pearl and Candie who represented the Auction House.
When the dress was sold to Jade, not on the basis of her highest bid but on the basis of their
long time friendship with Candie, this surmounted to a breach of contract between Pearl and
Candie or the Auction House.
Equitable Remedies
When there is a breach of contract by a party, the court normally awards monetary
damages in favour of the innocent party (Blat,2002). However, there are different types of
remedies that may be available to Pearl who is not very keen on money damages but on how

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Running head: BREACH OF CONTRACT
she can get the wonderful dress which she strongly believes she is entitled to as the final
bidder.
Pearl may rely on equitable remedies which are awarded on the basis of what is fair or
what seems to be right in a given situation. These remedies have the advantage of not being
obliged to follow precedent or the common laws in application. On the contrary, they are a
flexible option which seeks to ensure justice for the innocent party. Equitable remedies are
not always used and may only be used where the calculation of money damages is difficult or
the money damages are not adequate in remedying the harm brought on the innocent party
(Ronal & Harvin, 1989). Having been the highest bidder, it is only fair that the dress be given
to Pearl and not Jade who is Candie’s friend, the Auction House’s representative.
Specific Performance
Where there has been a breach of a contract, may consider making an order of specific
performance which has to be requested by the innocent party (Ibbetson, 2001) The breaching
party will be required to adhere to the terms laid out in the contract and fulfil his or her
obligations as originally promised (Grinsted, 2002)
When Candie availed the dress for auctioning, it is accurately presumed that the
highest bidder would be the one to definitely carry the day. Therefore, when Pearl raised the
highest bid, she was entitled to get the dress. Pearl may request the court to ask Candie, the
breaching party, to give the dress to Pearl who was the innocent party after factually raising
the highest bid.
Defences
Candie or the Auction House may rely on the defence of mistake. Candie may defend
her position stating that it was a mistake to auction the dress as it meant a lot to her so she

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Running head: BREACH OF CONTRACT
wished to reverse her decision of auctioning it to giving it to her dearest childhood friend.
She may also defend herself by saying that Jade was the highest bidder though Pearl took the
advantage of Candie and Jade being childhood friends to convince the court that Jade did not
win the auction.

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Running head: BREACH OF CONTRACT
References
Blatt, D (2002). High Court case summaries on contracts. 2d ed. St. Paul, Minn.:
Wadsworth.
Grinsted, B (2002). Evolution of court-ordered mergers. Mercer Law Review 53.
Ibbetson, D (2001). A historical introduction to the law of obligations. New York: Oxford
Univ. Press.
Ronald, M & Harvin, D (1989). Damages for breach of contract. 2d ed. Carswell.