Part 2: Equitable Remedies

Question 1

What are equitable remedies?

Answer 1

It is when monetary remedies are not adequate.

Equity developer a range of remedies that are available at the courts discretion.

A person who does not obey court order will be in contempt of the court.

For breach of contract, there are two main equitable remedies:
1. Specific performance
2. Injunction

Question 2

In relation to equitable remedies, what is specific performance?

Answer 2

Court order compelling performance of contract.

Court has discretion in deciding whether to order it.

Discretion is exercised in accordance with key principles, including:

1. SP will not be ordered where damages would be adequate remedy

E.g sale of goods - usually sufficient to award damages to by replacement (unless subject matter is unique)

2. SP not awarded if it will require constant supervision / monitoring by the court

CASE: Court refused SP as it would require Porter to be in ‘permanent attendance’ at a block of flats and courts would need to keep checking.

3. Generally not available in relation to contract of personal services (e.g employment)
4. Subject to principle of mutuality - if order available to one party then it must be available to the other.
5. Party seeking remedy must have conducted themselves properly

Question 3

In relation to equitable remedies, what is injunction?

Answer 3

Court order instructing someone to refrain from action.

E.g sought when a party tries to break promise not to work for another while engaged with claimant.

It is used at court’s discretion and not used if damages are sufficient.

Not granted if it wold have the effect of forcing the performance of a personal service contract since it would be an indirect way of ordering the specific performance of a personal service contract.