Contractual equitable relief

Question 1

What is the typical type of equitable relief in contract cases?

Answer 1

Specific performance

Question 2

To get specific performance, you must show what 5 things?

Answer 2

1. Contract exists
2. Contracts conditions have been fulfilled
3. Legal remedy inadequate
4. Enforcement is feasible, and
5. No defenses available to defendant

Question 3

When is the legal remedy inadequate in contract law such that specific performance is justified?

Answer 3

Where the thing bargained for is rare or unique: 1. Land, 2. Personal property that is unique, of personal significance, or in short supply, or 3. Personal services (though non-compete > spec perf)

Question 4

What are the 4 requirements of a covenant not to compete for it to be enforceable?

Answer 4

1. Services unique
2. Covenant reasonably necessary to protect the legitimate interests and reasonable as to geographic scope and duration
3. Covenant must not unreasonably burdened the parties, and
4. Must not harm general public

Question 5

Does a covenant not to disclose trade secrets imply a covenant not to compete?

Answer 5

No. You may covenant not to disclose trade secrets without preventing yourself from working for a competitor.

Question 6

Defined rescission?

Answer 6

In rescission, there is NO MEETING OF THE MINDS. Rescission voids a contract and leaves the parties as though the contract had never been made.

Question 7

**What are the grounds for rescission (voiding the contract and leaving the parties as though it had never been made)? 4 options

Answer 7

1. Mutual mistake of material fact
2. Unilateral mistake where the other party knew or should have known
3. In New York, mistake of law where it can be justified by analogy with mistake of fact
4. Misrepresentation of a material fact and actual reliance thereon.
   There are also basic contractual reasons, like duress, undue influence, illegality, lack of capacity, or failure of consideration

Question 8

Define Reformation. What are the 2 grounds for it?

Answer 8

Reformation changes the written agreement to make it conform with the ORIGINAL INTENT of the parties. The grounds for Reformation are: 1. Mutual mistake of fact or law, or 2. Misrepresentation, the contract will be reformed to reflect the EXPRESSED intent of the parties.

Question 9

What is a constructive trust?

Answer 9

A constructive trust is a restitutionary remedy to PREVENT UNJUST ENRICHMENT when someone wrongfully gains title to property. It will force the constructive trustee to convey title to the plaintiff.