MBE Rules · Remedies
Real-Property Inadequacy Presumption
Cal. Civ. Code § 3387
The rule
Damages are conclusively presumed inadequate for breach of an agreement to convey a single-family dwelling the buyer intends to occupy, and rebuttably presumed inadequate for other real property — anchoring specific performance.
In plain English
When someone breaches a contract to sell a single-family home that the buyer plans to live in, the law assumes that monetary damages won't be enough to remedy the situation. For other types of real estate, while damages are also presumed inadequate, this presumption can be challenged with evidence.
Worked example
A buyer enters into a contract to purchase a single-family home but the seller refuses to go through with the sale. The buyer wants to compel the seller to complete the sale rather than just seek money damages, as they intend to live in the home. The court will likely grant specific performance because the law presumes that damages are inadequate in this situation.
Memory hook
Home sweet home means specific performance, not just cash!
The trap
Exams may present scenarios involving different types of real property, leading students to misapply the presumption of inadequacy. Be careful not to overlook the distinction between single-family dwellings and other real estate.
How examiners test it
Questions often involve a breach of contract for real estate sales, requiring candidates to identify whether specific performance is appropriate based on the type of property involved.
Drill this rule until it can't fail you.
Vrenberg generates unlimited questions on this exact rule, tracks your mastery of it, and brings it back until it sticks.