Rescission / Reformation / Other Non-Monetary Remedies

Question 1

Rescission

Answer 1

A remedy by which a voidable contract is put to an end and the parties are treated as though it had never been made. Allowed if:

1. Mutual mistake as to a substantive matter;
2. A unilateral mistake will not normally suffice, unless it is known to the other party or would create hardship to the mistaken party;
3. Other grounds like duress, undue influence, lack of capacity, or failure of consideration will also justify rescission.

• Negligence usually is not a defense to rescission.
• If a contract is rescinded, restitution is generally available to recover on any value exchanged prior to rescission.

Question 2

Reformation

Answer 2

Treats the contract as valid and changes a writing set forth or implementing the agreement to conform to the originally intended agreement. Allowed if:

1. Mutual mistake as to a collateral matter
2. Unilateral mistake because of fraud, if both parties should’ve been aware of it
3. Negligent misrepresentation

*Parol evidence may be used to prove an agreement

Question 3

Declaratory Judgment

Answer 3

It is used to have the legal rights or relations of interested parties clarified.
- There must be an actual controversy and interested parties.
Superior Courts under the Declaratory Judgment Act (GA) have power to declare:
1. existence of rights or obligations
2. nature of legal relationships - is it a partnership, corporation, etc.?
3. No requirement for petitioner to show present monetary harm
4. Parties to a declaratory action have the right to a jury trial

Question 4

Subrogation

Answer 4

Involves the substitution of a third party in the place of the victim or injured party. When this happens:

1. PL has paid a third party’s loss
2. Where PL has paid third party’s obligation
3. PL has discharged a lien against a third party

**Only available with respect to property rights, and it is not available to volunteers (you had to have a legal obligation)

Question 5

No Exeat

Answer 5

A type of civil arrest warrant issued to restrain a person or property from leaving the state. (Most often used in divorces). Available to the following PLs:

1. Joint obligors
2. Persons under disability (minor, decedent, etc.)
3. Remaindermen
4. Mortgagees
5. Those who would be irreparably harmed

Question 6

Quia Timet

Answer 6

Because he fears” - To clear or quiet title to land
Two types:
1. Conventional quia timet (Seeking to establish title against a particular D)
2. Quia timet against all the world (Would use in Adverse Possession)

Question 7

Bill of Peace

Answer 7

Grounds for issuance of bill of peace:

1. to confirm a previously established right
2. to avoid a multiplicity of actions

The purpose is to end litigation and it is typically enforced by an injunction.
ex. Can’t sue for auto accident and recover from defendant driver and then try and recover from insurance company. Insurance company can seek issuance for bill of peace

Question 8

Interpleader

Answer 8

Two types:

1. Statutory Interpleader - brought in any Ct (Rule 22)
2. Equitable Interpleader - brought in Superior Court

Question 9

Constructive Trust

Answer 9

-Equitable remedy imposed by courts to prevent unjust enrichment
Requirements:
1. Title held by D
2. Unjust enrichment
3. Inadequacy of legal remedy

-Can show inadequacy of remedy by showing D’s insolvency.

Defenses:

1. Usual equitable defenses
2. Transfer to BFP

Question 10

Equitable Lien

Answer 10

-Lien on property to prevent unjust enrichment
-Once imposed on D’s property lien can be foreclosed and the property sold to satisfy claim
Requirements:
1. Title held by D or property that can be traced to wrongfully obtained property’s proceeds
2. Unjust enrichment
3. Legal remedy inadequate