Equitable remedies

Question 1

Purpose of equitable remedies

Answer 1

They should be awarded where common law damages are an inadequate award and justice isn’t served.Can be awarded where:
* The item being bought is so unique that no alternative can be found.
* the defendant cannot pay
* the claimant’s business is being harmed.

Question 2

Specific performance

Answer 2

-Court order that forces the offending party to perform their part of the contract.
-It’s an equitable remedy which gives the court discretion on whether or not it’s granted
-The discretion is based on several key principles:
* S.P won’t be granted where damages would be an adequate remedy.
* S.P won’t be granted if constant supervision of the court is needed to ensure the order is complied with.
* S.P is generally not available for contracts of personal service, such as employment.
* ‘Delay defeats equity.’ S.P isn’t normally available if the claimant takes too long in seeking the remedy.
* S.P is subject to the principle of mutuality, meaning that if the order is available to one party, it should also be available to the other party.
* S.P isn’t available where the claimant’s actions are inequitable: ‘He who comes to equity must come with clean hands’

Question 3

Specific Performance(CL)

Answer 3

• Ryan v Mutual Tontine Westminster Chambers Association- An order for specific performance failed as the court could not be expected to supervise the work.
• Flight v Bolland- The court would not award specific performance as the other party couldn’t have succeeded in obtaining the same remedy against a minor who lacked capacity.
• Webster v Cecil- A request for specific performance failed because the claimant was trying to enforce a contract for land that he knew included an inaccurate statement as to price.

Question 4

Specific Restitution

Answer 4

• Is the repayment to the claimant of any money or other benefits that they’ve passed to the defendant in advance of the breached contract.
• In contract law, the restitution is to do with consideration. The presence/absence of consideration may determine the appropriateness of the remedy.
• Restitution is sometimes used to prevent the unjust benefit of one party.
• CL:Stocznia Gdanska SA v Latvian Shipping Co.- The H.O.L said the true test of whether there was failure of consideration is based not on whether the buyer receieved nothing under the contract but on whether the seller had done nothing under the contract.
• Attorny-General v Blake- Restitution was used as it was an exceptional case: the defendant did not provide full service through his breaching of the Official Secrets Act.

Question 5

Rescission

Answer 5

Contractual damages cannot be claimed because the contract has been set aside for all purposes and so there is no basis for any claim on the contract. As it’s been set aside, there can be no breach.
CL: Long v Lloyd*

Question 6

Injunction

Answer 6

An injunction is a court order instructing someone to:
* Refrain from doing something(prohibitory) or
* do something(mandatory)
Injunctions vary as to the relief they offer:
* They can be perpetual, where the remedy itslef is a final remedy.
* They can be interim, where they’re granted in advance of any trial of the issue so as to retain the status quo.
-Injunctions are seldom mandatory as they’re difficult to oversee and enforce.

Question 7

Limitations on the award of equitable damages in contract law

Answer 7

The majority of contract and tort actions are subject to the basic limitation period of six years from the date on which the action arose.(the Limitation Act 1980)
The reasons for the limitation:
1. If there is a valid case, the claimant should be encouraged to bring the action ASAP thus enabling evidence to be gathered and preserved.
2. It’s only fair on the defendant that the claim should be brought ASAP as they can suffer from not knowing the certainty of their budget when contemplating the possible costs of a successful action against them.