Chapter 2 Self-Test Questions

Which of the following statements most accurately describes the operation of Equity?

Equity is primarily the exercise of judicial discretion and contains very few identifiable rules.

Equity has developed its own rules and principles. The court will not dismiss these rules to achieve a fairer result.

Equity has developed its own rules and principles. The court is willing to alter and dismiss these rules to achieve a fairer result.

Equity is known for its rigidity in being rule-based.

'The origins of Equity lie in conscience and fair dealing, but that does not give judges the freedom to act in an unprincipled way.'

True.

False.

How does England and Wales differ from Australia in the recognition of constructive trusts?

Constructive trusts in England arise through judicial discretion, whereas in Australia the constructive trust arises by virtue of clearly defined principles related to unconscionability.

Constructive trusts in England arise by virtue of clearly defined principles related to unconscionability, whereas in Australia the constructive trust arises through judicial discretion.

There is no such thing as a constructive trust in Australia.

Constructive trusts will only be recognized in England if the circumstances are provided for in statute.

Which of the following statements are true? There may be more than one correct answer.

The notion of conscience is relatively new to Equity.

Conscience has no role in Equity.

Equity is a doctrine founded on conscience.

Whilst not an original feature, the notion of conscience has come to be of some significance to Equity.

An objective assessment of the defendant's conscience considers which of the following?

What the defendant thought at the time of the relevant act.

What the defendant did at the time of the relevant act, in the light of what has been determined in hindsight.

What the defendant did at the time of the relevant act, in the light of the facts as the defendant knew or believed them to be.

What the defendant says that she thought was the honest thing to do at the time.

'Making decisions using the court's conscience necessarily results in arbitrary choices being made.'

True.

False.

'Judges can attach conditions to the grant of equitable remedies.'

True.

False.

What is meant by 'those who come to Equity must come with clean hands'?

Equity will not assist an individual who has acted illegally.

Equity will not assist an individual who has acted immorally.

Equity will not assist an individual who has acted questionably.

Equity will not assist an individual who has acted appropriately but for an improper purpose.

One party agrees to sell land to another. At what time do the property rights in the land vest in the transferee? There may be more than one correct answer.

The legal title passes to the transferee at the time of contract.

The legal title passes at the time of registration.

A constructive trust will arise at the moment of negotiation.

A constructive trust will arise from the time of contract.

Which of the following statements are true?

Equity presumes that people act in good conscience and altruistically.

Equity presumes that people act in good faith and without remuneration.

Equity is suspicious of benevolent intent and altruism.

Equity has no link with conscience.

'Equity, unlike the Common Law, circumvents limitation periods and does not let delay defeat entitlement to a remedy.'

True.

False.

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