Equity Flashcards
Why did equity develop as a separate body of law?
A. To supplement common
law where it was too rigid
B.To replace common law
C. To make common law more complex
D. To allow the King more power over courts
A – Equity developed to address the strict procedural rules and limited remedies of common law by providing flexible and fair solutions.
Which case established that equity prevails over common law when there is conflict?
A. Donoghue v Stevenson
B. Earl of Oxford’s Case (1615)
C. Young v Bristol Aeroplane
D. Rylands v Fletcher
B – Earl of Oxford’s Case (1615) confirmed that when common law and equity conflict, equity prevails.
What is the key difference between common law and equity remedies?
A. Common law remedies are discretionary
B. Equitable remedies are discretionary, while common law remedies are available as of right
C. Equitable remedies are available as of right
D. Common law does not award damages
B – Equitable remedies are awarded at the court’s discretion, whereas common law remedies (such as damages) are automatic if liability is established.
Which of the following is NOT an equitable remedy?
A. Specific performance
B. Injunction
C. Rescission
D. Compensation
D – Compensation (damages) is a common law remedy, not an equitable one. Equity provides discretionary remedies such as specific performance and injunctions.
A seller refuses to transfer a unique painting to the buyer despite a valid contract. What is the most appropriate equitable remedy?
A. Rescission
B. Damages
C. Rectification
D.Specific performance
D – Specific performance is appropriate when damages are inadequate, particularly for unique goods like artwork or real estate.
A landlord threatens to demolish a heritage building despite an agreement to preserve it. The tenant wants to stop this. What equitable remedy should be sought?
A. Rectification
B. Rescission
C. Prohibitory injunction
D. Declaration
C – A prohibitory injunction prevents a party from doing something—in this case, stopping the landlord from demolishing the building.
A contract is written incorrectly due to a drafting error, making the terms unclear. What is the best equitable remedy?
A. Specific performance
B. Injunction
C. Rectification
D. Rescission
C – Rectification corrects written agreements to reflect the parties’ true intentions when there has been a mistake in recording the contract.
A person was forced into signing a contract under threats. They now want the contract to be undone. What is the best remedy?
A. Declaration
B. Rescission
C. Injunction
D. Specific performance
B – Rescission cancels a contract when it was formed under misrepresentation, mistake, duress, or undue influence, restoring the parties to their original positions.
