Question Tag: Equitable Remedies

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Equitable remedies are not granted as of right but at the discretion of the court.

Required:
Explain THREE (3) discretional remedies that could be granted by the court.
(6 marks)

  1. Injunctions: Injunctions are equitable remedies granted at the discretion of the court. They come in two main forms:
    • Prohibitory Injunction: Prevents a party from doing something.
    • Mandatory Injunction: Compels a party to perform a specific act. Injunctions can also be quia timet (preventive), final, or interim.
  2. Specific Performance: Specific performance is a court order compelling a party to fulfill their obligations under a contract. It is an alternative to damages and is granted at the court’s discretion when damages are inadequate.
  3. Restitution: Restitution involves restoring a party to the position they were in before a contract was breached. It ensures that a party who has been unjustly enriched at the expense of another is required to return what was gained.

(3 points well explained @ 2 marks each = 6 marks)

Identify and explain any TWO (2) equitable remedies under the law of contract.
(8 marks)

 

The following are some equitable remedies:

  • Specific performance: This is a judicial order to the promisor to undertake the performance to which they obligated themselves in a contract. The injured party asks the court to order the other party to perform the promise made. Specific performance is an alternative remedy to damages and may be issued at the discretion of the court.
  • Rescission: This is an order that seeks to restore the parties to their original status before the contract was made. In an action for rescission, the injured party asks the court to declare the contract void and return the contracting parties as near as possible to the positions they had prior to entering the contract.
  • Injunction: This is a court order directing a person to stop doing something that they should not do. In an action for injunction, the injured party asks the court to restrain or enjoin the party in breach from certain activities.

(1 mark each for correct identification of any 2 remedies; and 3 marks for explanation of each of the 2 remedies identified = 8 marks)

a) Distinguish between a legal and equitable remedies in contract law. (2 marks)

  • Remedy is the relief a Court may grant upon finding that a wrong has been committed.
  • Legal remedies refer to the right to be awarded monetary damages, while equitable remedies refer to the right to some relief from the Court other than damages.