Problem
A. In each of the following scenarios, is specific performance an appropriate remedy? Explain why or why not.
a. Johnson contracts to sell her house and lot to Marshall. Then, on finding another buyer willing to pay more, Johnson refuses to deed the property to Marshall.
b. Shakira contracts to sing and dance in Lou's nightclub for one month, beginning June 1. She then refuses to perform.
c. Lu contracts to purchase a rare coin owned by Patrick, who is breaking up his coin collection. Patrick decides to keep his coin collection intact and refuses to deliver the coin to Lu.
d. Sunshine Corp. has three shareholders: Wilson, who owns 48% of the shares; Ortiz, who owns 48% of the shares; and McIntyre, who owns 4% of the shares. McIntyre contracts to sell her 4% to Ortiz. Later, McIntyre refuses to sell her shares to Ortiz.
B. Andy's Chocolates contracted with American Sugar Company to purchase sugar for the upcoming holiday season. A month before delivery was due, American Sugar informed Andy's that it would not be able to ship the contracted-for amount of sugar due to problems at its refinery. Andy's is unable to find an adequate supply of sugar elsewhere, and what sugar Andy's has been able to obtain has cost Andy's $2.00 more per pound. Additionally, Andy's has been unable to fulfill several of its customers' orders, and those customers have indicated that they will not do business with Andy's in the future. Andy's sues American Sugar for compensatory damages, incidental damages, consequential damages for this year's lost profits and for future lost profits, and for punitive damages. American Sugar argues that it is only liable for compensatory damages. Who is correct, and how would the damages be determined?