Self-test questions: Equitable Remedies

. Why were equitable remedies first created by the Courts of Chancery?

As a result of a power struggle between the Chancery and common law courts

To be harsher than the common law courts

To mitigate the harshness of the common law

Because of religious doctrine

. What is the remedy of recission?

The right to affirm the contract

The right to compel the other contracting party to carry out their contractual obligations

The right to set aside the contract and be placed in the position the claimant otherwise would have been in

The right to set aside the contract and be restored to claimant's former position

. Is it possible to rescind voluntary transactions?

Yes - in all circumstances

Yes - where there is a mistake

No - it is never permissible to rescind

Yes - where there is undue influence present

. Is it possible to rescind a contract for misrepresentation?

Yes - in all circumstances, even if it is an opinion

No - misrepresentation is never a ground for rescission

Yes - but only if the statement induced the party to enter into the contract and is of fact

Yes - but only if the party making the representation is an expert

. Which of the following is not a limitation to the availability of rescission?

Financial impact

Affirmation

Laches

Restitutio integrum is impossible

. What is the remedy of rectification?

The correction of a document to reflect the presumed intentions of the parties

The correction of a document to reflect the real intentions of the parties

The correction of a document to reflect the courts' subjective view of the intentions of the parties

The right to void the contract

. Which of the following are forms of mistake?

Unilateral

Group

Hive

Common

. What is the duty to account?

Where a party must provide a set of accounts

Where a party must explain their actions

Where a party has acquired a benefit they are not permitted to retain

Where a party must file a tax return

. In which of the following circumstances is the remedy of specific performance available?

When there is unique personal property

Contracts for personal services

Where there are no market substitutes

Where there is land

. In Wilson v Northampton and Banbury Junction Rly, when did Selbourne LC state that specific performance would be available?

It is only available in instance of misrepresentation

When it is a 'means to do more and complete justice'

When it is a 'means to achieve fairness'

At the absolute discretion of the court

. Which of the following are barriers to being granted specific performance?

Time consumption

Need for constant supervision

Lack of consideration

Claimant being in breach of contract

. A prohibitory injunction requires a party to do what?

To undertake specific actions

To pay damages

To refrain from doing certain actions

To carry out contractual terms

. A mandatory injunction requires a party to do what?

To refrain from doing certain actions

To undertake specific actions

To pay contractual damages

To fulfil contractual obligations

. Which of the following are not factors for granting an interim injunction?

'There is a serious issue to be tried'

'The haste of the claimant'

'Real prospect of a trial'

'The balance of convenience'

. What is a quia timet injunction?

Where an infringement of rights has already occurred

Where an infringement of rights has been threatened or apprehended

Where the claimant wishes to prevent the existence of the injunction being known

An injunction granted after a full trial

. Which of the following are requirements for a freezing injunction?

The defendant must be in a foreign jurisdiction

A real risk that assets will be dissipated by the defendant

Frankness about the claimant's case's weaknesses

A 'good arguable case'

. Which of the following are requirements for a search order?

A strong prima facie case

Serious potential damage

A real possibility that evidence will be destroyed

A 'proven and irrefutable case'

. 6 months ago Alvin received judgment in favour of a tort claim. He received £567,000 in damages and received advice from his accountants about how he should deposit the moneys to avoid paying tax. Alvin did as he was advised, but it now transpires that tax is payable, and that Alvin's accounts were wrong. Will Alvin be able to rescind his actions?

Yes - because of the doctrine of frustration

No - it is never possible to rescind a voluntary transaction

No - because there was no unconscionability

Yes - because there was a 'causative mistake of sufficient gravity'

. Last year Marina entered into a lease to sell donuts on a local high street. In the negotiations she asked what quantity of donuts the present tenant was selling, and the response was '£456,000 per annum'. Marina has, however, only seen sales of £123,456, despite selling the exact same donuts. It now transpires that the previous tenants only sold £170,000 worth of donuts per year. Will Marina be able to rescind the tenancy?

Yes - under the doctrine of duress

Yes - because there was misrepresentation of fact

No - rescission of a contract is never permissible

Yes - because there was misrepresentation of opinion

. Maude recently signed a documents granting a bank a second mortgage on her home. She only signed the documents because he husband had threatened to leave her if she did not sign, as he needed the moneys to prop up his failing business. She received no independent advice from the bank or a solicitor. Will Maude be bound by the mortgage?

No - she will be able to rescind for unconscionability

Yes - only threats of violence are sufficient

No - because her husband's creditors can estoppel were from rescinding the mortgage

No - she will be able to rescind for undue influence

. Coco recently bought a second-hand car, and after 4 days discovered that the rear axle was faulty despite the seller declaring the car to be in good working order. However, they continued driving the car for 7 weeks before informing the seller that they wished to rescind the contract. Which of the following reasons is the most applicable and will prevent Coco from rescinding the contract for the car?

Affirmation

Third-party rights

Delay

Restiutio integrum is impossible

. Clarissa recently agreed to purchase a strip of land close to her house which she intends to build a barn on. She has entered into a contract with the current owner of the land, but they are refusing to now sell the land because they received a higher offer. What will be the most appropriate remedy available to Clarissa be to get possession of the land?

Specific performance

Prohibitory injunction

Damages

Account

. Leo is the owner a statue of the world's greatest living footballer. The statue is infamous worldwide for how unlike the footballer it looks. Leo had agreed to sell the statue to an unnamed purchaser, but has found out it is the footballer himself who has agreed to purchase it, and they wish to destroy the statue. Disliking the footballer and wanting the statue to continue to exist, Leo is refusing to sell it. Can Leo be compelled to sell the statue to the footballer under the remedy of specific performance?

Yes - because it is a contract for personal services

No - because it is not land

No - because the statue can be easily replaced

Yes - because the statue is unique property

. Fatima is a renowned performance artist, and has agreed to perform at a London art gallery in 3 weeks' time. She has, however, just received a better offer that is promising to cover her losses at the art gallery and pay her triple what the art gallery was willing to pay on top. Will the art gallery be able to obtain the remedy of specific performance and require Fatima to perform for them?

Yes - because all contracts for service are specifically enforceable

No - because it is contract requiring the carrying on of a business

No - because it is a contract for service

No - because Fatima is not providing anything unique

. Magnus recently heard a rumour that one of his employees is secretly working for a foreign rival and giving them secret information. Which of the following would be relevant remedies Magnus should seek to minimise the effect of his employees' conduct?

Superinjunction

Freezing injunction

Prohibitory injunction

Search order

. Clotild is seeking an interim prohibitory injunction. There is a planned music festive that she believes does not have the relevant permits, and the field in which it is occurring is next to her house. If the festival goes ahead, Clotild is worried about the damage that could be done to her house by the vibrations and guests. The festival organisers are worried that they would have to reschedule for 2 weeks' time if Clotild is successful. Which of the following American Cyanamid factors does this most address?

There being serious question to be tried

Nuisance

A prospect of trial

The balance of convenience

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