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Contract: Remedies

Rescission and rectification

  • 3 things to know
  • Components 2 and 3

Overview

Equitable remedy, doctrine of laches and maxim about clean hands.

What you need to know

Answer each one before you reveal it.

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Key term

What is an equitable remedy?

Key term

When will an equitable remedy be refused?

Key term

How does rescission fit among the equitable remedies?

Questions from this subtopic

Each one with the model answer underneath.

  1. 1

    What is an equitable remedy?

    Model answer

    An equitable remedy is one granted at the discretion of the court rather than as of right. Equitable remedies developed to supplement the common law award of damages.

  2. 2

    When will an equitable remedy be refused?

    Model answer

    An equitable remedy may be refused for delay, for unclean hands, or where damages are adequate. Hardship to the defendant is also a ground for refusal.

  3. 3

    How does rescission fit among the equitable remedies?

    Model answer

    Rescission is discretionary, so a court may refuse it for delay, hardship or third party rights. Damages at common law are available as of right once a breach is proved.

  4. 4

    On what grounds may a contract be rescinded?

    Model answer

    Rescission is available for misrepresentation, duress, undue influence and certain kinds of mistake. Each ground shows that consent was defective.

  5. 5

    What is the doctrine of laches?

    Model answer

    Laches bars an equitable remedy where the claimant has delayed unreasonably. Delay suggests acceptance of the position and may prejudice the other side.

  6. 6

    What does the maxim about clean hands mean?

    Model answer

    A claimant seeking an equitable remedy must not have behaved improperly in the same transaction. Misconduct by the claimant justifies refusing relief.

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