9084 · 3.4.2
Equitable flashcards
Revision flashcards for Cambridge 9084 Equitable (syllabus 3.4.2). Flip, recall, then mark a real past-paper question.
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Specific performance?
Court order **compelling** party to perform contractual obligation — discretionary equitable remedy.
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When is SP granted?
When **damages inadequate** — especially **land** (unique) and rare/unique goods (Beswick v Beswick).
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When is SP refused?
Personal services, constant supervision needed, mutuality lacking, hardship, unclean hands.
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Mutuality of remedy?
Both parties must be capable of SP against them — if one could not be compelled, neither gets SP. The test is applied at the date of the hearing (*Price v Strange*).
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Prohibitory injunction?
Restrains breach of **negative** covenant — e.g. not to compete (*Warner Bros v Nelson*).
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SP vs damages for land?
Every piece of land is **unique** — damages rarely adequate; SP almost always available. Contrast with *Co-Operative Insurance v Argyll Stores* where SP was refused for a covenant to keep a business open.
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What is the primary condition for a court to grant an equitable remedy in contract law?
The primary condition is that the common law remedy of damages must be inadequate to compensate the claimant for the loss caused by the breach of contract.
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Why is specific performance generally not awarded for contracts of personal service?
Because it would be an infringement on personal liberty, akin to slavery, and would require constant court supervision to ensure the quality of performance, which is impractical. See *De Francesco v Barnum*.
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Explain the principle from *Warner Bros v Nelson*.
A court may grant a prohibitory injunction to prevent a party from breaching a negative promise (e.g., not to work for a competitor), but it will not enforce a contract for personal service. The injunction must not be so restrictive that it forces the defendant to either perform or remain idle.
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What does the equitable maxim 'He who comes to equity must come with clean hands' mean?
It means a claimant seeking an equitable remedy must not themselves be guilty of improper or unfair conduct in relation to the subject matter of the contract. If they have acted inequitably, the court will refuse the remedy. See *D&C Builders v Rees*.
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What is 'laches' in the context of equity?
Laches is the legal term for unreasonable delay in pursuing a right or claim. In equity, it is encapsulated by the maxim 'delay defeats equity'. If a claimant waits too long to seek an equitable remedy, to the prejudice of the defendant, the court may refuse to grant it. See *Leaf v International Galleries*.
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What is the significance of *Co-operative Insurance v Argyll Stores*?
The House of Lords refused to grant specific performance to keep a store open, establishing that equitable remedies will not be granted if they require constant supervision by the court, as it is impractical and not the court's role.
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What is an interim injunction?
A temporary court order granted before a full trial to preserve the status quo. The court applies the *American Cyanamid* guidelines: is there a serious question to be tried, are damages inadequate, and where does the balance of convenience lie?
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What is a mandatory injunction?
A court order compelling a party to perform a positive act to rectify a breach (e.g., demolish a wall built in breach of covenant). It is granted more rarely than a prohibitory injunction.
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How can 'hardship' prevent specific performance?
A court may refuse to grant specific performance if it would cause severe hardship to the defendant that is disproportionate to the benefit to the claimant. See *Patel v Ali*.
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Can specific performance be granted for non-unique goods?
Generally no, but exceptionally yes. In *Sky Petroleum v VIP Petroleum*, an injunction with the effect of SP was granted for petrol (not unique) during an oil crisis because the claimant could not obtain it elsewhere and would go out of business. This shows the key test is inadequacy of damages.