For a breach of a service contract, which equitable remedy is proper?

• A. Specific performance
• B. Monetary damages
• C. Injunction
• D. Rescission

Answer: (C)

The key idea is that for service contracts, the court typically cannot compel personal performance. Specific performance is generally unavailable because ordering someone to work raises practical and policy issues and is hard to supervise. Damages are a legal remedy, not equitable. Rescission unwinds the contract rather than addressing ongoing harm from the breach.

An injunction fits the situation because it can stop ongoing or threatened breaches and prevent irreparable harm, such as enforcing confidentiality, non-compete, or non-solicitation obligations, or preventing the service from being continued in violation of the contract. When damages wouldn’t adequately remedy the harm or when the breach would cause irreparable harm, an injunction is the appropriate equitable remedy.

So, the proper equitable remedy for a breach of a service contract is an injunction.