Remedies (Main Deck)*

Question 2

WHAT MUST YOU CONSIDER WHEN APPROACHING A REMEDIES QUESTION?

Answer 2

STEP 1: DETERMINE WHETHER LEGAL REMEDIES ARE AVAILABLE

STEP 2: DETERMINE WHETHER EQUITABLE REMEDIES ARE AVAILABLE

STEP 3: DETERMINE WHETHER EQUITABLE DEFENSES MAY APPLY

Question 3

PRELIMINARY CONSIDERATION:

WHAT MUST YOU DO BEFORE DISCUSSING REMEDIES IN AN ESSAY QUESTION?

Answer 3

1) Determine what substantive area of law is involved, AND
2) Establish that the Plaintiff has a case.

Question 4

PRELIMINARY CONSIDERATION:

WHAT ARE THE TWO PRIMARY CATEGORIES OF REMEDIES?

Answer 4

1) Legal Remedies
2) Equitable Remedies

Question 5

PRELIMINARY CONSIDERATION:

IN WHAT ORDER MUST REMEDIES ALWAYS BE ANALYZED & WHY?

Answer 5

First: Legal Remedies

Second: Equitable Remedies

Reason: Legal remedies must be analyzed first because equitable relief is not available unless the Plaintiff can first demonstrate that no adequate legal remedy exists. A legal remedy is adequate only if it is as complete, practical, and efficient as the equitable remedy.

Note: In some cases, both legal and equitable remedies may be awarded (e.g., damages awarded to compensate the Plaintiff and an injunction entered to prevent future harm).

Question 6

PRELIMINARY CONSIDERATION:

WHAT TYPE OF REMEDY ARE DAMAGES & FOR WHAT PURPOSE ARE THEY AWARDED?

Answer 6

Damages are a legal (monetary) remedy, the fundamental principle of which is to restore the injured party as nearly as possible to the position she would have been in but for the wrong suffered.

Damages:

1) Compensatory Damages
2) Punitive Damages
3) Liquidated Damages
4) Nominal Damages
5) Statutory Damages

Note: Statutory damages are available when a statute provides for a minimum recovery amount in the case of violation. Generally, a Plaintiff must prove the statute was violated and that the violation caused the Plaintiff actual harm to recover the statutory minimum.

Question 7

PRELIMINARY CONSIDERATION:

WHAT ARE RESTITUTIONARY REMEDIES & FOR WHAT PURPOSE ARE THEY AWARDED?

Answer 7

Restitutionary remedies are intended to prevent the Defendant’s unjust enrichment and work to disgorge the Defendant of benefits wrongfully obtained. Both law and equity provide for restitutionary remedies.

Legal Restitutionary Remedies:

1) Money (“Restitutionary Damages’)
2) Replevin
3) Ejectment
4) Quasi-Contract

Equitable Restitutionary Remedies:

1) Constructive Trust
2) Equitable Lien
3) Rescission
4) Reformation

Question 8

PRELIMINARY CONSIDERATION:

WHAT ARE COERCIVE REMEDIES & FOR WHAT PURPOSE ARE THEY AWARDED?

Answer 8

Coercive remedies are equitable remedies that are used to force an individual to engage in or refrain from engaging in a course of conduct. Coercive remedies are enforced by the court’s contempt power.

Coercive Remedies:

1) Injunctions (Torts)
2) Specific Performance (Contracts)

Question 9

PRELIMINARY CONSIDERATION:

WHEN IS EQUITABLE RELIEF AVAILABLE?

Answer 9

Equitable relief is available only upon the Plaintiffs showing that a legal remedy would be inadequate and that he would suffer irreparable harm in the absence of an equitable remedy. The granting of equitable relief is at the sole discretion of the court.

Question 10

PRELIMINARY CONSIDERATION:

LIST THE LEGAL REMEDIES AVAILABLE IN TORT

Answer 10

Tort Legal Remedies:

1) Damages
a) Compensatory Damages
b) Consequential Damages
c) Nominal Damages
d) Punitive Damages
2) Restitutionary
a) Money (“Restitutionary Damages’)
b) Replevin
c) Ejectment

Note: Actions for harm caused to property (e.g.. trespass, nuisance, etc.) are actions in tort.

Question 11

PRELIMINARY CONSIDERATION:

LIST THE EQUITABLE REMEDIES AVAILABLE IN TORT

Answer 11

Tort Equitable Remedies:

1) Equitable Restitutionary Remedies
a) Constructive Trusts
b) Equitable Liens
2) Equitable Coercive Remedies
a) Injunctive Relief

Question 12

PRELIMINARY CONSIDERATION:

LIST THE LEGAL REMEDIES AVAILABLE IN CONTRACT

Answer 12

Contract Legal Remedies:

1) Damages
a) Compensatory Damages
b) Consequential Damages
c) Liquidated Damages
d) Nominal Damages
2) Restitutionary
a) Restitutionary Damages
b) Quasi-Contract
c) Replevin
d) Ejectment

Question 13

PRELIMINARY CONSIDERATION:

LIST THE EQUITABLE REMEDIES AVAILABLE IN CONTRACT

Answer 13

Contract Equitable Remedies:

1) Equitable Restitutionary Remedies
a) Constructive Trusts
b) Equitable Liens
c) Rescission
d) Reformation
2) Equitable Coercive Remedies
a) Specific Performance

Question 14

STEP 1 -

LEGAL REMEDIES:

COMPENSATORY DAMAGES

(Define)

Answer 14

Definition: Compensatory damages are calculated based on the cost ofthe injury to the Plaintiff and are intended to compensate the Plaintiff for her loss.

Tort: In tort cases, compensatory- damages are intended to put the Plaintiff back in the position she would have been in had the injury not occurred.

Contract: In contract cases, compensatory damages are generally intended to put the Plaintiff in the position she would have been in had the breaching party performed fully.

Note: Compensatory damages for breach of contract may be based upon an expectation or reliance interest.

Question 15

CONTRACT:

EXPECTATION INTEREST

(Define & State the Rule)

Answer 15

Definition: The expectation interest provides the non-breaching party with the profits it would have received had the contract been performed.

Rule: Compensatory damages for breach of contract usually are computed based on the non- breaching party’s expectation interest.

Question 16

CONTRACT:

RELIANCE INTEREST

(Define & State the Rule)

Answer 16

Definition: The reliance interest seeks to place the non-breaching party in the position it would have been in had the contract never been created.

Rule: Compensatory damages for breach of contract are computed based on the reliance interest when the non-breaching party suffered harm due to its reasonable reliance on the contract.

Question 17

WHAT IS REQUIRED FOR A PLAINTIFF TO BE AWARDED COMPENSATORY DAMAGES?

Answer 17

Rule: To receive compensatory damages in a tort or contract case, a Plaintiff must demonstrate:

1) The Defendant breached a duty or contract,
2) The breach caused the harm or injury in dispute,
3) The harm or injury was foreseeable at the time of the breach,
4) Damages can be calculated with reasonable certainty, AND
5) The Plaintiff made a reasonable effort to mitigate the harm caused.

Question 18

EXPLAIN THE CERTAINTY REQUIREMENT FOR CALCULATING DAMAGES

Answer 18

Rule: Damages must be established with reasonable probability and are not allowed to be overly speculative.

Note: The amount of damages need not be absolutely certain, however, and may be approximated if a reasonable basis of computation is provided.

Question 19

HOW ARE FUTURE LOSSES CALCULATED?

Answer 19

Rule: To be compensated for future losses, a Plaintiff must demonstrate that the losses are more likely than not to occur. Upon such a showing, the Plaintiff can recover in full for all future losses stemming from the injury or breach.

Note: This is known as the “All or Nothing Rule.”

Question 20

CONSEQUENTIAL DAMAGES

(Define)

Answer 20

Definition: Consequential damages are those that arise as a natural, proximate, or probable consequence ofthe tortious act or breach of contract. They are awarded distinct from and in addition to compensatory damages when it is determined that compensatory damages will not make the Plaintiff sufficiently whole.

Question 21

WHAT IS REQUIRED FOR A PLAINTIFF TO BE AWARDED CONSEQUENTIAL DAMAGES?

Answer 21

Rule: Consequential damages may be awarded to make the Plaintiff whole if the damages:

1) Arise naturally from the tortious conduct or breach of contract, AND
2) Were reasonably foreseeable.

Note: Foreseeability is measured at the time the contract was executed or at the time the tortious conduct occurred.

Question 22

NOMINAL DAMAGES

(Define)

Answer 22

Definition: Nominal damages are used to vindicate a Plaintiffs rights when the they have been violated and:

1) No loss is sustained, OR
2) The injury cannot be measured.

Question 23

TORT:

PUNITIVE DAMAGES

(Define & State the Rule)

Answer 23

Definition: Punitive damages are awarded in addition to compensatory, consequential, or nominal damages to punish the Defendant and deter future unlawful conduct.

Rule: Due Process prohibits grossly excessive punitive damage awards against tortfeasors. To determine if damages are grossly excessive, courts balance:

1) The degree of reprehensibility of the conduct,
2) The disparity between the harm suffered and the amount of the award, AND
3) The amount of damages commonly awarded for comparable conduct.

Note:

1) The Defendant’s conduct must be worse than negligence.
2) Punitive damages are not awarded for breach of contract.

Question 24

CONTRACT:

LIQUIDATED DAMAGES

(Define & State the Rule)

Answer 24

Definition: Liquidated damages are damages specifically provided for in the contract between the parties.

Rule: Parties to a contract are generally permitted to agree on the amount of damages orthe manner in which damages will be recovered in the event of breach by either party. A liquidated damages clause will be upheld if:

1) The amount agreed upon is a reasonable estimate ofthe amount required to compensate for the loss, AND
2) Damages were difficult to ascertain at the time of contract formation.

Note: The amount stated in the liquidated damages clause must be compensatory (not punitive) in nature.

Question 25

LEGAL RESTITUTIONARY DAMAGES

(Define & State the Rule)

Answer 25

Definition: Legal restitutionary damages are based on the value ofthe benefit conferred on the Defendant.

Rule: Legal restitutionary damages can be measured by:

1) The reasonable value ofthe benefit conferred, OR
2) The extent to which the Defendant’s property value was increased or other interests advanced.

Note:

1) A Plaintiff cannot be awarded both compensatory and restitutionary damages.
2) Restitutionary damages are not available when the claim is only for partial damages.

Question 26

REPLEVIN

(Define & State the Rule)

Answer 26

Definition: Replevin is a legal restitutionary remedy that allows the Plaintiff to recover possession of personal property.

Rule: Replevin is available when the Plaintiff establishes:

1) He had the legal rightto possession ofthe property, AND
2) The Defendant is wrongfully- withholding the property.

Note:

1) The Plaintiff can recover personal property before trial if:
a) A preliminary judicial hearing is held, AND
b) The Plaintiff posts a bond.
2) The Defendant can defeat recovery and retain possession of the property until the conclusion of the trial by posting a redelivery bond.

Question 27

EJECTMENT

(Define & State the Rule)

Answer 27

Definition: Ejectment is a legal restitutionary remedy that allows a Plaintiff to recover possession of real property.

Rule: Ejectment is available when the Plaintiff establishes:

1) She had the legal right to possession of the property, AND
2) The Defendant is wrongfully withholding (possessing) the property.

Note: Ejectment must be carried out by the sheriff.

Question 28

CONTRACT:

QUASI-CONTRACT

(Define & State the Rule)

Answer 28

Definition: Quasi-contractual relief may be available if a contract fails and results in the unjust enrichment of one of the parties.

Rule: Quasi-contractual relief will be available when the Plaintiff establishes:

1) One party has conferred a benefit on the other,
2) The conferring party has a reasonable expectation of being compensated,
3) Benefits were conferred at the express or implied request ofthe other person, AND
4) Unjust enrichment would result if the Defendant were allowed to retain the benefits.

Question 29

STEP 2 -

EQUITABLE REMEDIES:

CONSTRUCTIVE TRUST

(Define & State the Rule)

Answer 29

Definition: A constructive trust is an equitable restitutionary remedy used to return legal title to property in which the Defendant has improperly acquired title to the proper owner.

Rule: A court may create a constructive trust over the property and declare the Defendant as trustee with the sole duty being to return legal title to the rightful owner. A constructive trust is generally available only if a legal remedy would be inadequate (e.g., the property is unique).

Note: If the Defendant has transferred title to the Plaintiffs property to a third party, a constructive trust can still be imposed over the property unless the transferee was a bona fide purchaser (BFP).

Question 30

EQUITABLE LIEN

(Define & State the Rule)

Answer 30

Definition: An equitable lien is an equitable restitutionary remedy used to reimburse the Plaintiff for a benefit:

1) Conferred on the Defendant’s property, OR
2) Gained by the Defendant through improper taking or use ofthe Plaintiff’s property.

Rule: A court may provide the Plaintiff with a security interest in the Defendant’s property to reimburse the Plaintiff for a benefit conferred on the Defendant.

Note:

1) The Plaintiff may foreclose the lien by forcing a sale of the property and applying the proceeds to the payment of the claim.
2) An equitable lien is generally available only if a legal remedy would be inadequate (e.g., the Defendant is insolvent).

Question 31

TORT:

MANDATORY INJUNCTION

(Define)

Answer 31

Definition: A mandatory injunction is a court order that compels a party to make an affirmative act.

Question 32

TORT:

PROHIBITORY INJUNCTION

(Define)

Answer 32

Definition: A prohibitory injunction is a court order that prohibits an act.

Note: A prohibitory injunction is also known as a negative injunction.

Question 33

TORT:

INJUNCTIVE RELIEF

(Define)

Answer 33

Definition: Injunctive relief is an equitable coercive remedy in which the Defendant is ordered to engage in or refrain from engaging in an act. Injunctions are enforceable through the court’s contempt power.

Note: Two types of injunctive relief are possible:

1) Temporary injunctive relief (i.e., TRO, Temporary Injunction)
2) Permanent injunctive relief

Question 34

TORT:

TEMPORARY RESTRAlNING ORDER

(Define)

Answer 34

Definition: A temporary restraining order (TRO) is issued pending a hearing to determine whether a temporary injunction should be issued.

Question 35

TORT:

TEMPORARY RESTRAINING ORDER

(State the Rule)

Answer 35

Rule: To obtain a TRO, the Plaintiff must demonstrate that immediate and irreparable injury will occur without the order. The Plaintiff must show:

1) No adequate remedy at law exists,
2) The Plaintiff may suffer irreparable harm if a restraining order is not issued,
3) The Plaintiff is likely to succeed on the merits ofthe case (i.e., more probable than not),
4) Issuance of the order will not cause substantial harm to the public, AND
5) The harm to the Plaintiff if the TRO is denied outweighs the harm to the Defendant if it is granted (“balancing of the hardships’).

Note:

1) A hearing for a TRO can proceed ex parte.
2) Though notice to the Defendant is not required, the Plaintiff should make a good faith effort to provide notice.
3) TROs are limited to 10 days in duration.
4) The requesting party usually must post a bond.

Question 36

TORT:

TEMPORARY INJUNCTION

(Define)

Answer 36

Definition: A temporary injunction is issued at the beginning of litigation and is intended to prevent irreparable harm from occurring before the merits of a suit are decided.

Note: Temporary injunctions are also known as preliminary injunctions.

Question 37

TORT:

TEMPORARY INJUNCTION

(State the Rule)

Answer 37

Rule: To obtain a temporary injunction, the Plaintiff must demonstrate that immediate and irreparable injury will occur without the injunction. The Plaintiff must show:

1) No adequate remedy at law exists,
2) The Plaintiff may suffer irreparable harm if a restraining order is not issued,
3) The Plaintiff is likely to succeed on the merits of the case,
4) The injunction will not cause substantial harm to the public interest, AND
5) The harm to the Plaintiff if the injunction is denied outweighs the harm to the Defendant if the injunction is granted (“balancing of the hardships’).

Note:

1) Notice and an adversarial hearing are required to issue a temporary injunction.
2) Once issued, a temporary injunction generally will remain in place through the duration of the trial (but not more than 3 years).
3) The requesting party must post a bond.

Question 38

TORT:

HOW DO COURTS BALANCE HARDSHIPS OF TEMPORARY RESTRAINING ORDERS & TEMPORARY INJUNCTIONS?

Answer 38

Courts often balance hardships on a sliding scale basis, in which the showing of hardship required by the party seeking the injunction is inversely related to the strength on the merits of that party’s claims.

Question 39

TORT:

PERMANENT INJUNCTION

(Define & State the Rule)

Answer 39

Definition: A permanent injunction is issued after a full hearing on the merits (or upon consent or default ofthe opposing party), and is intended to permanently prohibit an act from occurring or to compel an act be carried out until a dispute is resolved.

Rule: To obtain a permanent injunction, the Plaintiff must demonstrate:

1) No adequate remedy at law exists,
2) The Plaintiffs property or a protectable interest is at stake,
3) Enforcement of the injunction is feasible, AND
4) The harm to the Plaintiff if the injunction is denied outweighs the harm to the Defendant if the injunction is granted.

Question 40

TORT:

WHAT IS THE PROPERTY RIGHT REQUIREMENT FOR SEEKING A PERMANENT INJUNCTION?

Answer 40

Traditional Rule: Traditionally, equity would grant relief only when a property right was involved.

Modern Approach: Today, equity will grant relief when any protectable interest is at stake.

Question 41

TORT:

HOW IS THE FEASIBILITY OF ENFORCING A MANDATORY INJUNCTION DETERMINED?

Answer 41

Rule: When a Plaintiff seeks mandatory injunctive relief (i.e.. requiring a Defendant to perform an affirmative act), enforcement problems may arise due to:

1) The difficulties inherent in court supervision over the Defendant’s actions, AND
2) Court concerns with ensuring the Defendant’s compliance with the order.

Question 42

TORT:

HOW IS THE FEASIBILITY OF ENFORCING A PROHIBITORY INJUNCTION DETERMINED?

Answer 42

Rule: When a Plaintiff seeks negative injunctive relief, no enforcement problem exists.

Question 43

TORT:

HOW DOES THE COURT BALANCE HARDSHIPS WHEN DETERMINING WHETHER TO GRANT AN INJUNCTION?

Answer 43

Rule: Courts will balance the hardship the Plaintiff will suffer if the injunction is not issued against the hardship the Defendant will endure if the injunction is issued. In balancing the hardships, courts will consider:

1) The disparity between the potential hardship suffered by each party from the issuance/non-issuance of the injunction,
2) The hardship to the public caused by the injunction, AND
3) The Defendant’s level of culpability.

Note: The court will not consider the potential harm to the Defendant if the Defendant’s conduct was more than negligent (e.g., reckless, malicious, intentional).

Question 44

TORT:

WHAT MUST BE INCLUDED IN A COURT ORDER GRANTING AN INJUNCTION OR TRO?

Answer 44

Rule: Every order granting an injunction or TRO must:

1) State the reasons for the injunction or TRO’s issuance,
2) Be specific in its terms, AND
3) Describe in reasonable detail the act ordered to be restrained.

Question 45

TORT:

WHO CAN BE BOUND BY AN INJUNCTION?

Answer 45

Rule: A court-ordered TRO: temporary injunction, or permanent injunction will bind:

1) Parties,
2) Employees and agents of the parties acting with notice of the order, AND
3) Third parties acting with notice of the order.

Question 46

TORT:

HOW ARE INJUNCTIONS ENFORCED?

Answer 46

Rule: Injunctions are enforced through the court’s contempt power. If a party refuses to obey an injunction, a court may hold the party in civil or criminal contempt.

1) Civil contempt may include:
a) Fining the party, AND/OR
b) Imprisoning the party until the party complies.
2) Criminal contempt may include:
a) Fining the party, AND/OR
b) Imprisoning the party.

Note:

1) If jailed under criminal contempt, the party must remain in jail for the prescribed period. Compliance with the order will not allow her to be freed.
2) Even if an injunction is erroneous, the party still must comply or risk being held in contempt.

Question 47

LIST 3 LEGAL REMEDIES THAT CAN BE RAISED AS POTENTIAL ALTERNATIVES TO AN INJUNCTION

Answer 47

1) Money Damages
2) Replevin
3) Ejectment

Question 48

TORT:

WHEN WILL MONEY DAMAGES BE INADEQUATE?

Answer 48

Rule: Money damages are inadequate if:

1) They are too speculative,
2) The Defendant is insolvent,
3) The act has only been threatened,
4) Irreparable injury will occur, OR
5) Unique property is at stake

Question 49

TORT:

WHEN WILL REPLEVIN BE INADEQUATE?

Answer 49

Rule: Replevin is inadequate if:

1) The property cannot be found or identified, OR
2) The Defendant destroyed or threatens to destroy the chattel.

Question 50

TORT:

WHEN WILL EJECTMENT BE INADEQUATE?

Answer 50

Rule: Ejectment is inadequate if the sheriff refuses to enforce an ejectment order.

Question 51

CONTRACT:

RESCISSION

(Define)

Answer 51

Definition: Rescission is an equitable remedy through which the original contract is voided.

Question 52

CONTRACT:

RESCISSION

(State the Rule)

Answer 52

Rule: A contract may be rescinded if the requesting party can prove:

1) Mistake,
a) Mutual Mistake:
i) As to a material fact -

Rule: Rescission usually granted.

ii) As to a collateral fact -

Rule: Rescission usually denied.

b) Unilateral Mistake
i) Rule: Rescission usually denied.
ii) Exception: If the non-mistaken party knows or should know of the mistake, rescission will be granted.
2) Misrepresentation (if the Plaintiff relied upon the misrepresentation),
3) Coercion,
4) Undue influence,
5) Lack of capacity,
6) Failure of consideration, OR
7) Illegality.

Question 53

CONTRACT:

REFORMATION

(Define & State the Rule)

Answer 53

Definition: Reformation is an equitable remedy through which the court alters a written agreement between parties to conform to the parties’ original understanding.

Rule: A contract may be reformed if the Plaintiff can establish:

1) A valid contract exists, AND
2) Grounds for reformation exist.
a) Mutual Mistake - Rule: Reformation usually granted.
b) Unilateral Mistake - Rule: Reformation usually denied.
i) Exception: If the non-mistaken party knows ofthe mistake, reformation usually will be granted.
ii) Note: Unlike rescission, this exception does not apply where the non-mistaken party should have known ofthe mistake, only where she actually knew of the mistake.

Question 54

CONTRACT:

SPECIFIC PERFORMANCE

(Define & State the Rule)

Answer 54

Definition: Specific performance is an equitable coercive remedy through which the court requires the parties to perform according to the terms of a contract.

Rule: To obtain specific performance, the requesting party must prove:

1) The contract is valid,
a) Must demonstrate the contract terms with certainty and definiteness.
2) The requesting party has performed (or is prepared to perform) according to the contractual conditions,
3) No adequate legal remedy alternative is available, AND
4) Mutuality of remedy.

Question 55

CONTRACT:

MUTUALITY OF REMEDY REQUIREMENT TO OBTAIN AN ORDER FOR SPECIFIC PERFORMANCE

(Define & State the Rule)

Answer 55

Definition: The mutuality of remedy requirement refers to the availability of the requested remedy to both parties to a contract.

Rule: To be granted specific performance, the requesting party must demonstrate that the remedy it is requesting would be available to the opposing party (i.e.. they’re both bound by the contract and it can be enforced against either party).

Question 56

STEP 3 -

EQUITABLE DEFENSES:

LIST 5 EQUITABLE DEFENSES THAT MAY BE AVAILABLE

Answer 56

1) Unclean Hands Doctrine
2) Unconscionability
3) Laches
4) Estoppel
5) Sale to a Bona Fide Purchaser (BFP)

Question 57

EQUITABLE DEFENSES:

UNCLEAN HANDS DOCTRINE

(Define & State the Rule)

Answer 57

Definition: The Unclean Hands Doctrine holds that “he who comes to equity must come with clean hands.”

Rule: Equity will deny relief to a Plaintiff who is guilty of wrongdoing in the transaction for which he is requesting relief.

Question 58

EQUITABLE DEFENSES:

UNCONSCIONABILITY

(Define & State the Rule)

Answer 58

Definition: A contract or bargain is deemed unconscionable when the terms of the agreement are so unfair that no reasonable and informed person would agree to them.

Rule: Courts will not enforce a contract against a party if the terms of the contract are unconscionable.

Note: Unconscionability is measured at the time of contract formation.

Question 59

EQUITABLE DEFENSES:

LACHES

(Define & State the Rule)

Answer 59

Definition: Laches is an unreasonable delay by the Plaintiff in bringing suit against the Defendant.

Rule: Laches will succeed as a defense to a remedial action if the unreasonable delay caused prejudice to the Defendant.

Question 60

EQUITABLE DEFENSES:

ESTOPPEL

(Define & State the Rule)

Answer 60

Definition: Estoppel works to ensure that a promise which the promisor should reasonably expect to induce action or forbearance by the promisee, and which does in fact induce such action or forbearance, will be enforced.

Rule: To succeed in estoppel, the Plaintiff must prove:

1) The party against whom estoppel is claimed made a promise,
2) The promise was intended to induce action or forbearance, AND
3) The promisee in fact changed her position in reliance on the promise.

Question 61

EQUITABLE DEFENSES:

SALE TO A BONA FIDE PURCHASER

(State the Rule)

Answer 61

Rule: If the property or subject matter in dispute has been sold to a person who purchased the property for value and in good faith, the BFP is the rightful owner and the property will not be returned to the Plaintiff.

Note: The court may order that an equitable lien be placed on the property of the Defendant to return the value of the property to the Plaintiff.