Chapter 21 Self-Test Questions

Why might the court grant an injunction?

To protect an individual's proprietary rights.

To protect an individual's reputation.

To protect an individual's rights where they reject an award of damages.

To protect an individual's personal rights.

What is a mandatory injunction?

An order which the defendant must obey.

An order granted in circumstances where the claimant's rights have been threatened.

An order requiring the defendant to act in a particular way.

An order requiring the defendant to pay money to the claimant.

What did Lord Diplock identify in American Cyanamid Co v Ethicon Ltd?

The quia timet injunction is only granted when the defendant is threatening to harm the claimant.

The interim injunction is a temporary and discretionary remedy awarded to protect the claimant against harm that cannot be adequately compensated by damages if liability is established.

The interim injunction is awarded at trial prior to the judgment being handed down.

The interim injunction can be awarded even where the claim is considered frivolous.

'The freezing order allows judges to freeze a defendant's assets to prevent them from being dissipated.'

True.

False.

'It is not possible to have a freezing order over assets which are held on trust.'

True.

False.

What is an Anton Piller order?

The former name for a search order.

A specific type of search order.

A freezing order.

A form of final injunction.

Which of the following statements are true?

Search orders are equitable.

Search orders are a tool of the Common Law which Equity has borrowed.

Search orders are only available in relation to equitable claims concerning equitable proprietary rights.

Search orders are exclusively for Common Law claims.

Which of the following are conditions that must be satisfied before a search order will be granted?

The claimant needs to establish an extremely strong prima facie case that the defendant is liable.

There needs to be a risk of potential damage arising for the applicant.

There needs to be clear evidence that the defendant has incriminating documents or assets in their possession.

The claimant needs very strong evidence indicating that the defendant has stolen something from the claimant.

'The rationale of the search order is to preserve evidence.'

True.

False.

Why is specific performance generally available for contracts for the sale of land?

Land has long been an exception to the normal rule that damages are sufficient.

Land is very expensive.

Land is unique.

It is unfair to renege on a contract for the sale of land.

'Specific performance is ordered as a matter of course.'

True.

False.

'In determining the suitability of an order for specific performance, the court's only consideration is the loss suffered by the claimant if the contract were breached.'

True.

False.

For what reasons would the court refuse an order for specific performance?

The claimant is not ready and willing to perform their obligations under the contract.

Damages are an adequate remedy for the breach of contract.

Enforcing the contract would require constant supervision by the court.

The defendant was not malicious or dishonest in breaching the contract.

'In order for the court to award damages in addition to or as a substitution for an equitable order, the claimant must establish that they are prima facie entitled to an equitable order.'

True.

False.

Once damages have been awarded in lieu of an equitable order being made, can the defendant be liable for future infringement?

The defendant will still be liable for future infringement of the claimant's right.

The defendant can continue to infringe the claimant's right as the infringement is no longer considered wrongful.

The defendant's ongoing infringement will be recognized as wrongful but they will not be held liable for that wrong.

The defendant can continue to infringe the claimant's right as they have effectively purchased the right to infringe.

'The measure of damages depends on whether the claimant's infringement is ongoing or has ceased.'

True.

False.

Which of the following statements are true?

Rescission is only available in Equity not at Common Law.

Rescission is available both in Equity and at Common Law.

The grounds for rescission in Equity and at Common Law are identical.

The grounds for rescission in Equity and at Common Law are different.

'The equitable jurisdiction to rescind a contract for a common mistake is fundamental.'

True.

False.

When will contracts made in breach of fiduciary duty be liable to be rescinded?

When the fiduciary deliberately deceived the principal.

When the fiduciary ignored legal advice.

All contracts made in breach of fiduciary duty are void, not voidable.

All contracts made in breach of fiduciary are liable to be rescinded.

On what grounds will rescission be unavailable?

Where it is not possible to restore the defendant to the position that they were in before the contract was made.

Where the claimant delays in rescinding.

Where the claimant waives the right to rescind and affirms the contract.

Where third parties have relied on the contract or a good faith purchaser has acquired the property.

When someone transfers property to another pursuant to a voidable contract, where is the legal title?

The legal title remains with the transferor.

The legal title passes to the transferee.

The legal title is suspended until the transfer is avoided or affirmed.

The legal title is shared by both the transferor and the transferee.

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