Question 1

Failure to take legal action to recover a debt within the limitation period means that the debt is no longer recoverable.

Accepted Answer

Failure to take legal action within the limitation period does not erase the debt itself; it only limits the legal remedies available to recover the debt, meaning the creditor cannot sue for the debt, but other collection methods may still be possible.

Question 2

Equitable remedies are discretionary.

Accepted Answer

Equitable remedies are discretionary because they are awarded based on equitable principles rather than strict legal rules. The court has the discretion to fashion a remedy that it deems just and fair under the circumstances, taking into account factors such as bad faith, unconscionable conduct, and the relative harm suffered by the parties.

Question 3

Which of the following remedies is NOT an equitable remedy?

Accepted Answer

Exemplary damages, also known as punitive damages, are not considered equitable remedies. Equitable remedies are typically used to provide a remedy beyond monetary damages, such as forcing someone to do something (specific performance) or stopping someone from doing something (injunction). An Anton Pillar order, also known as a civil search warrant, is an equitable remedy used in cases of intellectual property infringement.

Question 4

Damages are an equitable remedy.

Accepted Answer

Damages are a legal remedy, not an equitable one. Equitable remedies include injunctions and specific performance, while damages refer to monetary compensation awarded in legal cases.

Question 5

In most Australian jurisdictions, the right to sue for breach of a simple contract is limited to the period of 6 years from the date on which the right of action accrues.

Accepted Answer

This is generally true for most Australian jurisdictions under the Limitation of Actions legislation. However, there may be exceptions or variations depending on the type of contract and circumstances of the case, so it's always best to seek legal advice.

Quiz 16: Remedies in Contract

Failure to take legal action to recover a debt within the limitation period means that the debt is no longer recoverable.

Equitable remedies are discretionary.

Which of the following remedies is NOT an equitable remedy?

Damages are an equitable remedy.

In most Australian jurisdictions, the right to sue for breach of a simple contract is limited to the period of 6 years from the date on which the right of action accrues.