Question

Give an example of a legal remedy and an equitable remedy for a breach of contract. Have you ever been involved with either of these or known someone who has?

Answer 1

Legal remedies are meant to put the aggrieved party to a position where it was before the formation of contract or at a position where it would be after successful completion of the contract. It may comprise of compensatory or consequential  damages which are monetary in terms. An example of a compensatory damage is from a work assigned to contractor to complete it before March 31, failing which penalties would be imposed. If the contractor fails to complete the work before the agreed time limit, the company may claim compensatory damages to bear the money it paid as penalties.

Equitable remedy is not monetary in nature but works on the principle of fairness. It aims to put the aggrieved party at the position where it would be if the contract is successful. Example of an equitable remedy is specific performance, i.e. asking the other party to comply with the contractual obligations so as to put the aggrieved party where it would have been after completion. Example is asking a goldsmith who negligently destroyed a precious stone while repairing a necklace, to replace it wit exactly same ( or as similar as possible or equal in value) stone.

I have been involved in a contract where a mechanic accidently damaged the headlight of my scooter while taking a test ride. He compensated for it by replacing t with a new one, as it was his fault. It was an equitable remedy.