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11 Cards in this Set

  • Front
  • Back

Equitable Defenses

1. Uncleanhands – party seeking relief must not have wrongful conduct with respect to transaction subject matter.


2. Laches– right to equitable relief cut off when unreasonable delay in initiating the claim, and the delay prejudices D.

Test for Inadequate Legal Remedy

(1)speculative,


2. Insolvent D,


3. Need multiple suits, OR


4. Unique property

Bonafide Purchaser

(1)pays valuable consideration,


(2) w/o notice of a party’s property title claim.

TEST FOR CONSTRUCTIVETRUSTS & EQUITABLE LIENS

i. Wrongfullyobtained property


1. Ex: misappropriation, fraud, ii. Tracedto P – solely to P, can’t be comingled


iii. D holdstitle


iv. Unjustlyenriched


v. Inadequatelegal remedy


vi. Exceptions:


1. SOF oral promise– no constructive trust forbreach of an oral promise when SOF req’d it to be in writing, unless exceptionapplies. SOF exceptions:


a. Part payment– for a goods sale, when part of the purchase price has been paid, the K isenforced and outside of SOF to the extent of the purchase.


b. part performance– ct may enforce K when part performance (acts by either party subsequent to Kformation) evidencing K existence.


c. Fraudulentpromise – a constructive trust will be imposed in the event of a fraudulentpromise


2. BFP – notsubject to constructive trust.

SOF EXCEPTIONS

1. SOF oral promise– no constructive trust for breach of an oral promise when SOF req’d it to be in writing, unless exception applies. SOF exceptions:


a. Part payment – for a goods sale, when part of the purchase price has been paid, the K is enforced and outside of SOF to the extent of the purchase.


b. part performance – ct may enforce K when part performance (acts by either party subsequent to K formation) evidencing K existence.


c. Fraudulent promise – a constructive trust will be imposed in the event of a fraudulent promise


2. BFP – not subject to constructive trust.

Types of Injunctions

a. TRO– preserve status quo until prelim injunction hearing. 10 days max.


b. Preliminaryinjunction – issued to preserve status quo pending outcome of litigation. Pmust post bond for possible harm to D.


c. PermanentInjunction – after trial. Same test but add req no equitable defenses.

Prima Facie case for Injunctions

P BOP must show:

1. Irreparable harm (imminent harm for TRO) a. Inadequate legal remedy


i. Speculative ii. Insolvent Diii. Need multiple suits; oriv. Unique property


b. Feasible enforcement


c. Status quo – preservation is primary concern


2. Hardship balancing – harm to P if denied vs. harm to D if granted


3. Likelihood of success in prelim injunction

K Remedies

1. Dmgs: compensatory, incidental, nominal,


* punitive not allowed


* liquidated dmgs allowed if: 1) dmg difficult to ascertain at time of K; and 2) rsnbl forecast of dmgs. excessive dmgs is void as penalty.


2. Restitution


Equitable Remedies:


3. specific performance


4. rescission


5. reformation

requirements to get specific performance

1. K valid, certain, definite


2. P duties satisfied


3. inadequate legal remedy


4. feasibility of enforcement


5. no applicable defenses

rescission of K

original k is voidale and rescinded. need 1) grounds for rescission (mutual mistake or unilateral where other party knew/should have known) and 2) no valid defenses

reformation of k

changes written agmt to conform w/parties original understanding.


1. valid k


2. grounds for reformation


3. no defenses.