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Equitable remedies
1
 1) Definition of SP:
 Order from court that a party fulfill obligation under the
contract
 Alternative remedy where damage is not adequate or not
beneficial (Harnett v Yeilding: Lord Reesdayle, “…damage
would not give the party the compensation he is entitled to as
if the agreement was specifically performed)
 Fulfill expectations interest of the innocent party
 2) Valid Contract:
 Breach of contract equals cause of action equals SP
 Contract must be valid for it to be enforced (eg land must be
sealed in a deed in accordance with doctrine of part
performance)
 2.1) Consideration and adequacy of consideration
 Consideration: Although under seal, contract must have
consideration (Jeffrey v Jeffrey: Lord Chancellor, “…the
court will not execute a voluntary contract…court withholds
assistance from the volunteer equally).
2
 Adequacy of consideration:
 Court must be satisfied (mountfort v Scott: entering of
an agreement with the option to later purchase a house
for 1p entitled P to get SP, which was also irrevocable)
 Adequacy of consideration is not sufficient a reason to
resist SP, but relevant for undue influence/unfairness
(Clark v Malapas)
 2.2) Valid Contract terms:
 No enforcement of vague/indefinite/imprecise contract
terms (equity does not act in vain)
 Cases:
 Joseph v National Magazine Co –(Jade expert and purported
article) court could not order SP because terms were not
sufficient precise thus damages was adequate
 Barrow v Chappell: (Publication of music = no personal
serv ice) SP granted because contract was not for a personal
services as well as the terms were clear thus damages
inadequate 3
 2.3) legal Disability:
 Lumley v Ravenscroft: SP was not ordered because one of the
two parties to the contract was a minor at the time
 2.4) Privity of contract
 SP will not be granted to those who are not parties to the
contract
 Exception: lease assignment, SP may be granted under the
head lease.
 3) SP-action in personam
 Directed to the person to fulfill the obligation
 Thus privity is important (Re Hawthorne)
 Makes order against def personally
 4) SP – discretionary order
 a) Basis for Jurisdiction
 SP reward only on equitable ground (except in exceptional
circumstances)
 Def is within jurisdiction, thus basis is good conscience to
compensates P’s lost (Harnett v Yeilding) 4
 b) Common Instances:
 i) real property:
 Land is common instance because of its unique
character – ie value fluctuation over periods
 No SP where unjust
 Warmingthon v Miller: No SP because sub lease was
breach not to underlet, damage ordered instead
 ii) Unique Personal property:
 ordinary article of commerce with no specific value or
interest –damage would be sufficient
 If unique character exist or is developed then SP would
be ordered because damage would be insufficient
 Cohen v Roche: No SP because set of chairs were
ordinary articles of commerce with no value or interest
 New Brunswick v Canada: Shares were unavailable and
as such became unique, SP ordered
5
 iii) Unjust enrichment:
 Person being enriched at the expense or detriment
of another
 Obligation to make restitution arises
 SP may be granted on this ground where third party
has a benefit and damages is inadequate (Beswick v
Beswick- damages would have been nominal and
nephew unjustly enriched if he retained the house)
 iv) Contractual terms:
 Terms indicate that there should be SP in default, a
matter for court to decide (Warner Brothers Pic v
Nelson – contract can be extended if P fails to
perform-no SP for personal service)
 c) Building Contracts
 Usually no SP because it is complex and
indefinite(and contracts must be precise) 6
 Exceptions:
 definite works with specific particulars
 Contract is of such importance that damages would be
inadequate (Wolverhampton v Emmons – SP ordered
because defs obligation was precise and damage would be
in adequate, p could not get another contractor)
 5) Factors considered:
 a) Ps conduct – clean hands:
 P must have entered contracted in good faith
 Unjust/fraudulent act/taken advantage of superior
bargaining position = no equitable relief (Jones v Lipman –
P tried to evade SP by conveying a house , he contracted to
buy to a company for the same purpose)
 NOTE: absence of clean hands not a complete bar
 b) Unfairness and hardship:
 Unfairness: unjust to grant SP to P who was at a position of
advantage (Def was drunk, sick, emotional)(Clark v Milpas-
def poor and ill educated)
7
 Hardship: SP would operate harshly against the def.
(Patel v Ali: couple agreed to sell house then sickness
and children overtook, stated difficult to leave house
because neighbours assisted…no SP because of
hardship, damages instead)
 c) Futility of performance:
 No SP because impossible or futile to perform (Tito v
Waddell: court will not make an order where the issue
is a short tenancy, its futile; Castle v Wilkinson: sale
could not be completed because P had not obtained a
life deed)
 Impecuniosity in futility (having little money)
 Impossibility of performance because there is no
money or very little (Titanic Quarter v Rowe: sale of
house could not be completed because def suffered
hardship or impecuniosities)
8
 d) Inadequacy of legal remedy:
 Damage is adequate, no SP
 Factors to consider:
 i. Subject matter of the contract (unique v common
instances)
 Common instance (property) -(warmingthon v
Miller – Damages sufficient, No SP case of a
breach of covenant not to underlet)
 Unique personal property (Cohen v Roche: set of
chairs were ordinary article with no value or
interest – no SP, property was not of value)
 ii. Damages difficult to estimate:
 Price of dividends cannot be determined (Adderly
v Dixon: damage at law would not be adequate and
so SP to sell the shares at a speculative price)
9
 iii. Nominal damages (Beswick v Beswick)
 6) Contracts if personal Service
 Generally not enforceable (complexity, uncertainty,
public policy, undesirability, supervision problems, etc)
(Lumley v Wagner: court has no power to make her sing
but could make her not sing for the other person in
honouring the contract; Ryan v Mutual Tortine: porter
was of personal nature could not supervise; contrast with
Posner v Scott Lewis porter here was a resident and did
not require supervision)
 Distinguishing Ryan from Posner
 Supervision required was continuous, Posner did not
require
 Ryan personal Posner not
 One merely and agreement with such services(posner)
but not personal
 Personal services includes employee and agent partner
10
 7) Contracts requiring constant supervision
 General rule: equity will not order acts it cannot
supervise = no SP (Ryan v Mutual Tortine; Posner v
Scott-Lewis; CH Giles v Morris: court considers human
nature and used the example that a person cannot be told
how to sing)
 c. Lack of mutuality
 Obligations must be mutual among the parties or equity
will not enforce-No SP (price v Strange: no mutuality at
the time of the contract because his obligation required
constant supervision)
 Perfect mutuality not essential
 Time of mutuality-time of the hearing
 Critical time for mutuality is at the time of the hearing
(Price v Strange: repairs and renovations done at the
time of the hearing mutuality was present at the date
of the hearing,
11
 8) Defenses for Specific Performance
 a. Mistake and Misrepresentation: (Solle v Butcher:
equitable jurisdiction created by Lord Denning; Great
Peace: there is no equitable jurisdiction in common
mistake)
 b. Conduct of the claimant: cleans hands doctrine
(Coatsworth v Johnson: improper conduct constitutes
illegal not immoral conduct but must have relation with
the equity sued for)
 c. Laches:
 Time delay not of the essence as common law
 Time delay does not bar the party who failed from
asserting his right
 Unreasonable delay causes injury and may become
prejudicial to the matter
 Delay must be sufficient to amount to abandonment
or a waiving of P’s right, so that it becomes unjust to
order SP
 Lindsay Petroleum v Hurd (supports all the
abovementioned points) 12
 Unreasonable delay in seeking SP (Lazard Bros v
Fairfield Prop: equity wants P to assert his right with
sufficient speed=consideration of whether it would be
just to grant SP in the circumstances)
 d. Public policy consideration ( Verral v Great Yarmouth:
arrangements made of great magnitude that will affect
people will be enforced)
 9) Part Performance
 1. Doctrine of PP defined
 Principle engrafted in the Stature of fraud
 One party wholly/partially perform his obligations in
the contract and the other party has not
 Prevents the statute from being used as a vehicle of
fraud
 ER
13
 Aggrieved party usually gets enforcement of the oral
contractor although its against the statute that indicates
it should be written
 2. Basis do the doctrine -Prevention of injustice
 Prevents the failing party from avoid his obligation
 SP only granted if fair:
 No undue influence
 No hardship
 Clean hands doctrine
 Madison v Alderson: traditional test “acts done in PP are
sufficient if agreement existed unequivocally (albeit oral)
 Criticism:
 Test tough
 Does not say who must do the act
 Only referable to a contract – only the one alleged
14
 Steadman v Steadman: sufficient to show that the acts
done was in reliance to contract, but does not necessary
have to prove that there was a contract – must be more
probable than not
 Effect:
 relaxation of standards of the statute
 Payment of money cannot amount to PP (Steadman:
act relied on was the payment of money by the husband
under the oral contract)
 3. Components of the performance
 a. acts may be referable to some possible love/affection
(Steadman v Steadman: broken down marriage where
husband agrees yo pay maintenance if wife transfers her
share of the matrimonial home)
 b. payment does not constitute PP (Chaproinere v Lambert
suggest that payment is sufficient to constitute PP but
Steadman does not agree) 15
 c. Def conduct must be such that it is inequitable for
him to take advantage of the failure
 d. contract must be enforceable (maddison v Alderson)
 e. must have proper parole evidence (Chaproinere v
Lambert)
16

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Ws 5

  • 2.  1) Definition of SP:  Order from court that a party fulfill obligation under the contract  Alternative remedy where damage is not adequate or not beneficial (Harnett v Yeilding: Lord Reesdayle, “…damage would not give the party the compensation he is entitled to as if the agreement was specifically performed)  Fulfill expectations interest of the innocent party  2) Valid Contract:  Breach of contract equals cause of action equals SP  Contract must be valid for it to be enforced (eg land must be sealed in a deed in accordance with doctrine of part performance)  2.1) Consideration and adequacy of consideration  Consideration: Although under seal, contract must have consideration (Jeffrey v Jeffrey: Lord Chancellor, “…the court will not execute a voluntary contract…court withholds assistance from the volunteer equally). 2
  • 3.  Adequacy of consideration:  Court must be satisfied (mountfort v Scott: entering of an agreement with the option to later purchase a house for 1p entitled P to get SP, which was also irrevocable)  Adequacy of consideration is not sufficient a reason to resist SP, but relevant for undue influence/unfairness (Clark v Malapas)  2.2) Valid Contract terms:  No enforcement of vague/indefinite/imprecise contract terms (equity does not act in vain)  Cases:  Joseph v National Magazine Co –(Jade expert and purported article) court could not order SP because terms were not sufficient precise thus damages was adequate  Barrow v Chappell: (Publication of music = no personal serv ice) SP granted because contract was not for a personal services as well as the terms were clear thus damages inadequate 3
  • 4.  2.3) legal Disability:  Lumley v Ravenscroft: SP was not ordered because one of the two parties to the contract was a minor at the time  2.4) Privity of contract  SP will not be granted to those who are not parties to the contract  Exception: lease assignment, SP may be granted under the head lease.  3) SP-action in personam  Directed to the person to fulfill the obligation  Thus privity is important (Re Hawthorne)  Makes order against def personally  4) SP – discretionary order  a) Basis for Jurisdiction  SP reward only on equitable ground (except in exceptional circumstances)  Def is within jurisdiction, thus basis is good conscience to compensates P’s lost (Harnett v Yeilding) 4
  • 5.  b) Common Instances:  i) real property:  Land is common instance because of its unique character – ie value fluctuation over periods  No SP where unjust  Warmingthon v Miller: No SP because sub lease was breach not to underlet, damage ordered instead  ii) Unique Personal property:  ordinary article of commerce with no specific value or interest –damage would be sufficient  If unique character exist or is developed then SP would be ordered because damage would be insufficient  Cohen v Roche: No SP because set of chairs were ordinary articles of commerce with no value or interest  New Brunswick v Canada: Shares were unavailable and as such became unique, SP ordered 5
  • 6.  iii) Unjust enrichment:  Person being enriched at the expense or detriment of another  Obligation to make restitution arises  SP may be granted on this ground where third party has a benefit and damages is inadequate (Beswick v Beswick- damages would have been nominal and nephew unjustly enriched if he retained the house)  iv) Contractual terms:  Terms indicate that there should be SP in default, a matter for court to decide (Warner Brothers Pic v Nelson – contract can be extended if P fails to perform-no SP for personal service)  c) Building Contracts  Usually no SP because it is complex and indefinite(and contracts must be precise) 6
  • 7.  Exceptions:  definite works with specific particulars  Contract is of such importance that damages would be inadequate (Wolverhampton v Emmons – SP ordered because defs obligation was precise and damage would be in adequate, p could not get another contractor)  5) Factors considered:  a) Ps conduct – clean hands:  P must have entered contracted in good faith  Unjust/fraudulent act/taken advantage of superior bargaining position = no equitable relief (Jones v Lipman – P tried to evade SP by conveying a house , he contracted to buy to a company for the same purpose)  NOTE: absence of clean hands not a complete bar  b) Unfairness and hardship:  Unfairness: unjust to grant SP to P who was at a position of advantage (Def was drunk, sick, emotional)(Clark v Milpas- def poor and ill educated) 7
  • 8.  Hardship: SP would operate harshly against the def. (Patel v Ali: couple agreed to sell house then sickness and children overtook, stated difficult to leave house because neighbours assisted…no SP because of hardship, damages instead)  c) Futility of performance:  No SP because impossible or futile to perform (Tito v Waddell: court will not make an order where the issue is a short tenancy, its futile; Castle v Wilkinson: sale could not be completed because P had not obtained a life deed)  Impecuniosity in futility (having little money)  Impossibility of performance because there is no money or very little (Titanic Quarter v Rowe: sale of house could not be completed because def suffered hardship or impecuniosities) 8
  • 9.  d) Inadequacy of legal remedy:  Damage is adequate, no SP  Factors to consider:  i. Subject matter of the contract (unique v common instances)  Common instance (property) -(warmingthon v Miller – Damages sufficient, No SP case of a breach of covenant not to underlet)  Unique personal property (Cohen v Roche: set of chairs were ordinary article with no value or interest – no SP, property was not of value)  ii. Damages difficult to estimate:  Price of dividends cannot be determined (Adderly v Dixon: damage at law would not be adequate and so SP to sell the shares at a speculative price) 9
  • 10.  iii. Nominal damages (Beswick v Beswick)  6) Contracts if personal Service  Generally not enforceable (complexity, uncertainty, public policy, undesirability, supervision problems, etc) (Lumley v Wagner: court has no power to make her sing but could make her not sing for the other person in honouring the contract; Ryan v Mutual Tortine: porter was of personal nature could not supervise; contrast with Posner v Scott Lewis porter here was a resident and did not require supervision)  Distinguishing Ryan from Posner  Supervision required was continuous, Posner did not require  Ryan personal Posner not  One merely and agreement with such services(posner) but not personal  Personal services includes employee and agent partner 10
  • 11.  7) Contracts requiring constant supervision  General rule: equity will not order acts it cannot supervise = no SP (Ryan v Mutual Tortine; Posner v Scott-Lewis; CH Giles v Morris: court considers human nature and used the example that a person cannot be told how to sing)  c. Lack of mutuality  Obligations must be mutual among the parties or equity will not enforce-No SP (price v Strange: no mutuality at the time of the contract because his obligation required constant supervision)  Perfect mutuality not essential  Time of mutuality-time of the hearing  Critical time for mutuality is at the time of the hearing (Price v Strange: repairs and renovations done at the time of the hearing mutuality was present at the date of the hearing, 11
  • 12.  8) Defenses for Specific Performance  a. Mistake and Misrepresentation: (Solle v Butcher: equitable jurisdiction created by Lord Denning; Great Peace: there is no equitable jurisdiction in common mistake)  b. Conduct of the claimant: cleans hands doctrine (Coatsworth v Johnson: improper conduct constitutes illegal not immoral conduct but must have relation with the equity sued for)  c. Laches:  Time delay not of the essence as common law  Time delay does not bar the party who failed from asserting his right  Unreasonable delay causes injury and may become prejudicial to the matter  Delay must be sufficient to amount to abandonment or a waiving of P’s right, so that it becomes unjust to order SP  Lindsay Petroleum v Hurd (supports all the abovementioned points) 12
  • 13.  Unreasonable delay in seeking SP (Lazard Bros v Fairfield Prop: equity wants P to assert his right with sufficient speed=consideration of whether it would be just to grant SP in the circumstances)  d. Public policy consideration ( Verral v Great Yarmouth: arrangements made of great magnitude that will affect people will be enforced)  9) Part Performance  1. Doctrine of PP defined  Principle engrafted in the Stature of fraud  One party wholly/partially perform his obligations in the contract and the other party has not  Prevents the statute from being used as a vehicle of fraud  ER 13
  • 14.  Aggrieved party usually gets enforcement of the oral contractor although its against the statute that indicates it should be written  2. Basis do the doctrine -Prevention of injustice  Prevents the failing party from avoid his obligation  SP only granted if fair:  No undue influence  No hardship  Clean hands doctrine  Madison v Alderson: traditional test “acts done in PP are sufficient if agreement existed unequivocally (albeit oral)  Criticism:  Test tough  Does not say who must do the act  Only referable to a contract – only the one alleged 14
  • 15.  Steadman v Steadman: sufficient to show that the acts done was in reliance to contract, but does not necessary have to prove that there was a contract – must be more probable than not  Effect:  relaxation of standards of the statute  Payment of money cannot amount to PP (Steadman: act relied on was the payment of money by the husband under the oral contract)  3. Components of the performance  a. acts may be referable to some possible love/affection (Steadman v Steadman: broken down marriage where husband agrees yo pay maintenance if wife transfers her share of the matrimonial home)  b. payment does not constitute PP (Chaproinere v Lambert suggest that payment is sufficient to constitute PP but Steadman does not agree) 15
  • 16.  c. Def conduct must be such that it is inequitable for him to take advantage of the failure  d. contract must be enforceable (maddison v Alderson)  e. must have proper parole evidence (Chaproinere v Lambert) 16