Chapter 29 Self-test questions

. Which of the statements given about accounts of profits is true?

Accounts of profits are awarded more often than compensatory damages.

Accounts of profits are awarded as often as compensatory damages.

Accounts of profits will be awarded only in exceptional circumstances.

Accounts of profits are never awarded.

. Will an account of profits be readily granted where the breaching party did so deliberately?

Yes.

No.

. What distinguishes accounts of profits from compensatory damages?

Accounts of profits emphasise stripping the defendant of gains made, rather than compensating the claimant.

Accounts of profits emphasise the losses suffered of the claimant, rather than the gains of the defendant.

Accounts of profits are mandatory remedies, compensatory damages are optional.

There is nothing to distinguish the remedies.

. What distinguishes 'consideration' in the contractual sense from 'consideration' in the unjust enrichment sense?

The meanings are identical.

The unjust enrichment meaning is the 'basis' or reason for the transaction.

The unjust enrichment meaning is the payment made in return for a service.

The unjust enrichment meaning requires the party transferring property to think seriously before doing so.

. In which of the circumstances given will A be able to sue B in unjust enrichment?

B has breached the parties' contract.

A has paid money to B and received nothing in return.

B has refused to perform their end of the bargain, so A refuses to pay B any money.

None of the options given is correct.

. When will the cause of action for total failure of consideration be advantageous when the claimant also has a remedy for breach of contract?

In all cases.

Where the claimant is insolvent.

Where the defendant is insolvent.

Where the claimant has made a bad bargain.

. Is it true to say that English law has traditionally been open to awarding punitive damages for breach of contract?

Yes.

No.

. For which types of claim are punitive damages now available?

Tortious claims.

Breach of contract claims.

Unjust enrichment claims.

All of the options given are correct.

. Even though AG v Blake opens the door to punitive damages for breach of contract, why might this not be followed?

Blake has rarely been applied.

Disgorgement of gains is not usually considered to be a punitive measure.

Both of the options given are correct.

None of the options given is correct.

. When might a claimant recover nominal damages?

Where the breach of contract is only discovered at a much later date.

Where the defendant is not blameworthy.

Where the claimant has suffered no loss.

Nominal damages are not recognised in English law.

. Which type of breach of contract may entitle a claimant to nominal damages?

Any breach of contract.

Only breaches of goods contracts.

Only breaches of commercial contracts.

Never.

. Why are nominal damages rarely awarded?

A claimant could seek a declaration that their rights have been infringed.

Obtaining nominal damages involves a more cumbersome process than compensatory damages.

Only certain types of claim entitle the claimant to damages.

All of the options given are correct.

. What happens if a person fails to comply with an order for specific performance?

They will instead be liable in compensatory damages.

They will instead be liable in punitive damages.

They will be in contempt of court.

Their property will be embargoed.

. Why was Lord Hoffmann in Argyll Stores reluctant to allow specific performance for the carrying on of a business?

It would require the constant supervision of the court.

The loss to the defendant by running a business for a long time may be more than the loss suffered by the claimant for the breach.

It limits the freedom of action of the defendant.

All of the reasons given are correct.

. How has the Consumer Rights Act 2015 altered the general law on specific performance?

It gives the right for a consumer to insist that any consumer contracts are performed.

It allows businesses to compel consumers to conclude particular contracts.

It gives the consumer a right to enforce a term of the contract that the goods be of a satisfactory quality.

It prevents consumers from insisting on particular methods of performance.

. What is the difference between a prohibitory and a mandatory injunction?

Prohibitory injunctions prevent a person from doing something; mandatory injunctions oblige them do something.

Mandatory injunctions prevent a person from doing something; prohibitory injunctions oblige them do something.

Mandatory injunctions are required in all cases; prohibitory injunctions are unlawful.

There is no substantive difference between the categories.

. The award of a prohibitory injunction is automatic. True or false?

True.

False.

. Will a limitation clause be able to side-line equitable relief?

Yes, the parties' freedom of contract is absolute.

Yes, provided the limitation is reasonable.

Yes, provided the limitation is not inequitable.

No, the equitable jurisdiction of the court cannot be set aside.

. How do damages in lieu of an injunction differ from common law damages?

Damages in lieu of an injunction are often much more generous than common law damages.

The cause of action does not have to have accrued for damages in lieu of an injunction, although the wrong should be anticipated.

There is no requirement for breach of contract, or the threat of it.

There is no distinction.

. According to Lord Reed in Morris-Garner v One Step (Support) Ltd, when should damages in lieu of an injunction be awarded?

Whenever the court deems it fit.

Only where the claimant has applied for an injunction.

Whenever the circumstances are such that an injunction would be inappropriate.

Damages in lieu of an injunction should never be awarded.

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