Learning Outcomes
After studying this article, you will be able to explain the nature and purpose of injunctions as a remedy for breach of contract, distinguish between prohibitory and mandatory injunctions, identify when an injunction may be granted instead of damages, and apply the key equitable principles and judicial considerations relevant to injunctions in contract law. You will also be able to answer SQE1-style questions on this topic.
SQE1 Syllabus
For SQE1, you are required to understand injunctions as a remedy for breach of contract, including their types, the equitable principles governing their grant, and the factors influencing the court’s discretion. In your revision, focus on:
- the distinction between prohibitory and mandatory injunctions
- the equitable nature of injunctions and the main principles applied by the courts
- the circumstances in which an injunction may be granted instead of damages
- the main factors affecting the court’s discretion, including adequacy of damages, balance of convenience, clean hands, delay, and practicality of enforcement
Test Your Knowledge
Attempt these questions before reading this article. If you find some difficult or cannot remember the answers, remember to look more closely at that area during your revision.
- What is the main difference between a prohibitory injunction and a mandatory injunction?
- In what circumstances will a court refuse to grant an injunction for breach of contract?
- What is meant by the “clean hands” principle in the context of injunctions?
- Why might a court prefer to award damages rather than an injunction?
Introduction
Injunctions are a key equitable remedy available for breach of contract. They are court orders requiring a party to do, or refrain from doing, a specific act. Injunctions are discretionary and are only granted when damages would not provide an adequate remedy. Understanding the types of injunctions, the equitable principles that apply, and the factors influencing the court’s decision is essential for SQE1.
Types of Injunctions
There are two main types of injunctions relevant to contract law: prohibitory and mandatory.
Key Term: injunction
A court order requiring a party to do, or refrain from doing, a specific act. Injunctions are an equitable remedy and are discretionary.Key Term: prohibitory injunction
An order restraining a party from doing a particular act, usually to prevent a breach or continuation of a breach of contract.Key Term: mandatory injunction
An order compelling a party to take positive steps to undo a breach or perform a contractual obligation.
Prohibitory Injunctions
A prohibitory injunction restrains a party from committing a breach of contract or continuing a wrongful act. This is the most common form of injunction in contract law.
Mandatory Injunctions
A mandatory injunction compels a party to take positive action, such as restoring property or performing a contractual obligation. Courts are cautious in granting mandatory injunctions, especially if ongoing supervision would be required.
The Equitable Nature of Injunctions
Injunctions are not available as of right. They are granted at the court’s discretion and are subject to equitable principles. The court will only grant an injunction if it is just and fair to do so, considering the conduct of both parties and the practicalities of enforcement.
Key Term: equitable remedy
A remedy granted at the discretion of the court, based on principles of fairness, rather than as of right.
When Will an Injunction Be Granted?
The court will only grant an injunction if damages would not be an adequate remedy. The following factors are considered:
- Adequacy of damages: If damages would fully compensate the claimant, an injunction will usually be refused.
- Balance of convenience: The court weighs the potential harm to each party if the injunction is granted or refused.
- Clean hands: The applicant must have acted fairly and in good faith.
- Delay (laches): Unreasonable delay in seeking an injunction may bar relief.
- Practicality: The court will not grant an injunction if it would be difficult or impossible to enforce.
- Public interest: The court may refuse an injunction if it would harm the public interest.
Worked Example 1.1
A company agrees not to compete with a former business partner for two years. Six months later, the company starts soliciting the partner’s clients. The partner seeks an injunction to stop the solicitation.
Answer: The court may grant a prohibitory injunction restraining the company from soliciting clients in breach of the agreement, provided damages would not be adequate and the partner has acted promptly and fairly.
Worked Example 1.2
A landlord covenants to provide a resident porter in a block of flats but fails to do so. A tenant seeks an injunction requiring the landlord to appoint a porter.
Answer: The court may grant a mandatory injunction if damages would not be sufficient and the obligation is clear and specific. However, if ongoing supervision would be required, the court may refuse the injunction.
Interim (Interlocutory) Injunctions
An interim injunction is a temporary order made before trial to preserve the status quo and prevent irreparable harm. The court will only grant an interim injunction if there is a serious issue to be tried, damages would not be adequate, and the balance of convenience favours the applicant.
Key Term: interim injunction
A temporary court order granted before trial to prevent harm or preserve the status quo until the case is decided.
Key Equitable Principles
Adequacy of Damages
If damages would fully compensate the claimant, an injunction will not be granted.
Balance of Convenience
The court considers which party would suffer greater harm if the injunction is granted or refused.
Clean Hands
The applicant must have acted honestly and fairly. If the applicant has acted improperly, the court may refuse relief.
Delay (Laches)
If the applicant has delayed unreasonably in seeking an injunction, the court may refuse to grant it.
Practicality and Enforceability
The court will not grant an injunction if it would require ongoing supervision or is otherwise impractical to enforce.
Public Interest
If granting the injunction would harm the public interest, the court may refuse to grant it.
Exam Warning
The court will not grant an injunction if it would require constant supervision or is too vague to enforce. In such cases, damages or specific performance may be more appropriate.
Revision Tip
Remember: Injunctions are discretionary. Always consider whether damages are adequate and whether the applicant has acted promptly and fairly.
Key Point Checklist
This article has covered the following key knowledge points:
- Injunctions are discretionary equitable remedies available for breach of contract.
- Prohibitory injunctions restrain a party from doing an act; mandatory injunctions compel a party to do an act.
- The court will only grant an injunction if damages are inadequate.
- Key equitable principles include adequacy of damages, balance of convenience, clean hands, delay, practicality, and public interest.
- Interim injunctions preserve the status quo before trial.
- The applicant must act promptly and fairly to obtain an injunction.
Key Terms and Concepts
- injunction
- prohibitory injunction
- mandatory injunction
- equitable remedy
- interim injunction
