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Flashcards in Equity (Barbri) Deck (7)
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1

All of the following are required for the remedy of constructive trust except


A Unjust enrichment


B Inadequacy of legal remedy


C Arms-length relationship


D Title held by defendant

C Arms-length relationship

C is correct. An arms-length relationship is not a requirement for a constructive trust. Rather, a constructive trust requires a confidential or fiduciary relationship. The other requirements of a constructive trust include unjust enrichment, inadequacy of legal remedy, and title held by the defendant.

2

All of the following are valid grounds for contract rescission except:


A Mutual mistake of material fact


B Mistake of law


C Unilateral mistake of material fact


D Misrepresentation

C Unilateral mistake of material fact

C is correct. Except in certain limited circumstances, unilateral mistake of fact is not a valid ground for contract rescission. Unilateral mistake of material fact is grounds for rescission only where the other party knew or should have known of the mistake, no steps in reliance were taken by the non-mistaken party, or where rescission is necessary to avoid extreme hardship. Valid grounds for contract rescission include mutual mistake of material fact, compromise agreements based on facts assumed to be true by both parties, mistake of law, and material misrepresentation.

3

Assuming that there is a valid, written contract for the sale of land, which of the following is a proper application of the doctrine of equitable conversion?


A Upon the death of the vendor, the vendor’s heirs inherit a real property interest, while the vendee’s estate receives a personal property interest


B Upon the death of the vendor, the vendor’s estate receives a personal property interest, while the vendee’s heirs inherit a real property interest


C Upon the death of the vendee, the vendee’s estate receives a personal property interest, while the vendor’s heirs inherit a real property interest


D Upon the death of the vendee, the vendee’s estate receives a real property interest, while the vendor’s heirs inherits a personal property interest.

B Upon the death of the vendor, the vendor’s estate receives a personal property interest, while the vendee’s heirs inherit a real property interest

B is correct. Upon the death of the vendor, the vendor’s estate receives a personal property interest, while the vendee’s heirs inherit a real property interest.The doctrine of equitable conversion provides that, after a contract for the sale of land has been entered into, the vendee is considered the owner of the land and the vendor is the holder of legal title only as security for the payment of the purchase price. In other words, the characterization of the respective property rights of the parties reverse themselves by virtue of the contract- i.e., the vendor has a personal property interest while the vendee has a real property interest. With regard to inheritance, in most jurisdictions, real property passes directly to the heirs of a decedent whereas personal property goes into the estate.

4

In which of the following scenarios would enforcement by specific performance be feasible?


A Franchisor seeks to compel specific performance by franchisee


B Theater company seeks to compel specific performance by stage actor


C Vendor seeks specific performance of land sale contract (the land is within the court’s jurisdiction but the vendee is not)


D Vendee seeks specific performance of land sale contract (the land is within the court’s jurisdiction but the vendor is not)

D Vendee seeks specific performance of land sale contract (the land is within the court’s jurisdiction but the vendor is not)

D is correct. Enforcement by specific performance is feasible where the vendee seeks to enforce a land sale contract, and the land (but not the vendor) is within the court’s jurisdiction. In a contract for sale of land, specific performance is feasible where the court does not have personal jurisdiction over the vendor, since the court can simply order the transfer of title of land within its jurisdiction. However, specific performance is not feasible where the court lacks personal jurisdiction over the vendee, since requiring the payment of money is an in personam order. Generally, contracts for personal services are not enforceable by specific performance. (Note: Florida considers franchise agreements to be contracts for personal services.)

5

In which of the following scenarios should a court award the equitable remedy of specific performance?


A Plaintiff has failed to timely perform, and the contract contains a “time is of the essence” clause


B In a contract providing for the sale of multiple chattels, one of plaintiff’s payment is a few days late. However, defendant has a history of excusing similar de minimus delays in the past


C Vendor of a parcel of land seeks specific enforcement of the sale contract, despite material defects in the title


D Vendee of shipment of 100 widgets seeks specific performance of the sale contract, despite vendor only having 1 widget available for shipment.

B In a contract providing for the sale of multiple chattels, one of plaintiff’s payment is a few days late. However, defendant has a history of excusing similar de minimus delays in the past

B is correct. The court should award the equitable remedy of specific performance where, in a contract providing for the sale of multiple chattels, one of plaintiff’s payments is a few days late, and defendant has a history of excusing similar de minimus delays in the past. Generally, failure to comply with a “time is of the essence” clause extinguishes a party’s rights under the contract. However, where a contract has been partially performed, an equity court may excuse such failure where the delay is de minimis and/or the court determines that the party seeking to enforce the clause has waived it by past failure to enforce. A vendor may obtain specific performance of a contract where there is a minor deficiency in the res to be transferred. However, where there is a material defect in title, a court will not award specific performance to a vendor. Generally, a vendee may obtain specific performance of a contract where the res is deficient, and receive monetary compensation for the deficiency. However, where the deficiency is so large as to render the suit essentially a claim for damages, a court will deny equitable relief, since such relief would deprive the defendant of the right to trial by jury.

6

A temporary injunction should be granted where the movant has:


A Shown irreparable injury and likelihood of success on the merits, provided notice, and posted a bond

B Shown severe injury and likelihood of success on the merits, provided notice, and posted a bond

C Shown irreparable injury and possibility of success on the merits, provided notice, and posted a bond

D Shown severe injury and likelihood of success on the merits, and provided a written explanation detailing unsuccessful efforts to provide notice

A Shown irreparable injury and likelihood of success on the merits, provided notice, and posted a bond

A is correct. A temporary injunction should be granted where the movant has: (1) shown irreparable injury; (2) shown likelihood of success on the merits; (3) provided notice or a detailed written explanation of the unsuccessful efforts to do so; and (4) posted a bond.

7

In which of the following scenarios is a court most likely to grant injunctive relief after weighing the hardship to defendant against the benefit to plaintiff?


A Plaintiff seeks to enjoin defendant from damming a river upstream from plaintiff’s property


B Plaintiff seeks an injunction mandating demolition of a skyscraper built and owned by defendant, which encroaches slightly onto plaintiff’s land (Prior to the commencement of construction, plaintiff had written defendant to inform her of the encroachment but defendant proceeded anyway)


C Plaintiff seeks to enjoin defendant from deliberately dumping garbage on her property


D Plaintiff seeks an injunction requiring the closure of defendant’s business, which plaintiff alleges makes too much noise

A Plaintiff seeks to enjoin defendant from damming a river upstream from plaintiff’s property

A is correct. After weighing the hardship to defendant against the benefit to plaintiff, a court is mostly likely to enjoin defendant from damming a river upstream from plaintiff’s property. Generally, in deciding whether to issue an injunction, a court will balance the benefit to the plaintiff if the injunction were granted against the resulting harm to the defendant. If the harm to the defendant greatly outweighs the benefit to the plaintiff, the injunction should be denied. B and C are incorrect because there are two situations where a court will not engage in balance of hardship analysis: where the defendant’s conduct was (1) willful or (2) in breach of plaintiff’s prior assertion of right. D is incorrect because where plaintiff seeks relief from an auditory nuisance through the closing of defendant’s business, the hardship imposed on the defendant would significantly outweigh the benefit to the plaintiff.