Chapter 36- Equitable Remedies

Question 1

What is the purpose of equitable remedies

Answer 1

• To achieve fairness and justice when damages are an inadequate remedy
  Nature: aimed at correcting or preventing injustice rather than compensating for loss

Question 2

Examples of where equitable remedies may be awarded

Answer 2

• The item is unique and no alternative is available
• The defendant cannot pay
• The claimant’s business is being harmed

Question 3

List the available equitable remedies

Answer 3

• Specific performance
• Specific restitution
• Rescission
• Injunction

Question 4

Specific performance:

Answer 4

Requires the breaching party to perform the contractual obligations as agreed
- it gives the court discretion on whether or not it should be granted and is based on several key principles:
- Not be applied where damages would be adequate
- not applied if constant supervision of the court will be needed to ensure the order is complied with
- not used for contracts of personal service such as employment
- not used if it takes too long to seek the remedy
- specific performance must be available to all parties
- not available where the claimants actions are inequitable

Question 5

Specific restitution :

Answer 5

• Restores the innocent party to their position before the contract
• This compensates the claimant for their losses but also prevents the defendant from gaining unfairly

Question 6

Rescission:

Answer 6

• This cancels the contract and treats it as if it never existed

Question 7

Injunction:

Answer 7

This is a court order instructing someone to:
- refrain from doing something (prohibitory)
- do something ( mandatory)

Question 8

Limitations on the award of equitable remedies

Answer 8

• Delay in bringing the action to court
• It does not apply to all breaches

Question 9

Advantages

Answer 9

• tailored to the circumstances can prevent injustice