Equity Flashcards
What is equity?
The body of principles and rules administered by the Court of Chancery before the Judicature Acts 1873-1875
What are the equitable remedies?
DR SIR
- Declaration
- Rescission
- Specific performance
- Injunction
- Rectification
Equitable remedies are awarded…
… only if damages would not be an adequate remedy
What was the key feature and benefit of equity?
Its greater flexibility; the Lord Chancellor was able to act outside the strict rules of procedure developed by the common law, and to decide cases guided by his own sense of fairness.
What is a Specific performance? When is it available?
Specific performance is an order by the court to compel a party to perform something they have promised to do under a contractual agreement.
It is an equitable remedy available for breach of contract.
Specific performance is a discretionary remedy and is not available as of right for every breach of contract.
As a general rule, specific performance is available only where:
- There is a valid and enforceable contract.
- Damages would not be an adequate remedy for the claimant.
CD
(Specific performance is not available for breach of a contract for personal services (e.g. employment), or for the performance of contractual obligations which would require constant supervision.)
What is an injunction?
An injunction is an order that requires a party to legal proceedings either:
- To do something (a mandatory injunction).
- To refrain from doing something (a prohibitory injunction).
An injunction may be awarded only where damages would not adequately compensate the claimant.
Injunctive relief can be interim (obtained before the conclusion of legal proceedings) or final (obtained at the conclusion of legal proceedings).
Although injunctions originated as an equitable remedy, the court’s jurisdiction to grant injunctive relief is now on a statutory footing. Under section 37 of the Senior Courts Act 1981, the court has jurisdiction to grant an injunction in “all cases in which it appears to the court to be just and convenient to do so”.
An injunction can be awarded unconditionally or subject to such terms and conditions as the court thinks fit.
What is Declaration?
A declaration is a legally binding statement by a court about any of the following:
- The legal rights of the parties.
- The existence of facts.
- A principle of law.
RFP
Courts can make a binding declaration whether or not any other remedy is claimed. However, a claim for a declaration alone is unusual. Generally, a declaration is sought in addition to other types of relief.
For example, a party might seek a declaration about the interpretation of a statutory provision applicable to their case.
What is Rescission? When is it granted?
Rescission is the setting aside of a contract.
It is available at common law and in equity.
Rescission is granted at the court’s discretion, and may be available where a contract has been concluded as a result of:
- Misrepresentation – where a party has been induced to enter a contract by a false representation of fact.
- Mistake – where the contract does not correctly reflect the intentions of one or both parties.
- Duress or undue influence – where a party to the contract was put under unlawful pressure to enter into it.
MMD
Rescission is only available where the parties can be put back to their pre-contractual position, i.e., as if the contract had never been entered into.
This is not always possible, especially where the contract has been partially performed, or was for the provision of a service.
What is Rectification? When is it available and not available?
The equitable remedy of rectification corrects a document to reflect the parties’ contractual intention.
Its main purpose is to correct mistakes made in recording agreements.
Rectification only applies in the case of written contracts.
Rectification may be used to correct most types of mistake in the way a transaction is recorded, for example missing words, incorrect descriptions or numbers.
However, if the errors in the written contract are too fundamental or extensive, rectification is not available.
What’s the main difference between equity and common law?
… that equitable remedies are discretionary
If there is conflict between equity and common law…
Equity always wins
