Contract; remedies for breach; orders of specific performance; damages not an adequate remedy.
Facts: Dougan sold a taxi cab, together with its operating licence, to Ley for £1,850. But after agreeing to the sale, Dougan changed his mind and refused to perform the contract. Ley sued for specific performance. Dougan argued that he was only liable to pay damages for his failure to perform the contract.
Issue: Was an order of specific performance an available remedy in these circumstances?
Decision: Ley was entitled to an order of specific performance.
Reason: Normally, the courts will not decree specific performance if damages are an adequate remedy. Damages are adequate where ordinary goods are purchased because equivalent goods can easily be purchased elsewhere. Specific performance will be ordered if the goods purchased are in some way unique, or have a special or particular value. The same is true of goods of unusual beauty, rarity or distinction, or where goods are sold as part of the equipment of a business. In the present case what was bought was not just a car but a specially adapted car together with the operating licence. At the time taxi licences were issued in limited numbers and were not readily available on the market, even to those with the money to pay for them. Accordingly, an award of damages was not an adequate remedy for breach of contract and an order of specific performance was appropriate.