EAQE Law of agency, contract and negligence question: contractual remedies

EAA EAQELaw of agency, contract and negligence

Which of the following statements about contractual remedies are correct? (i) Damages aim to put the innocent party in the position as if the contract had been performed. (ii) Rectification corrects a written document that does not record the parties' actual agreement. (iii) An injunction can restrain a party from breaching a negative covenant. (iv) Equitable remedies must be granted whenever damages would be inadequate.

A (i), (ii) and (iii) only
B (i) and (ii) only
C (ii), (iii) and (iv) only
D (i), (ii), (iii) and (iv)

Show the answer and explanation

Answer: A. (i), (ii) and (iii) only

Answer: (i), (ii) and (iii) only. (i) True. Contract damages protect the expectation interest. (ii) True. Rectification aligns the document with the true agreement. (iii) True. Injunctions restrain breaches, including of negative covenants. (iv) False. Equitable remedies are always discretionary. Rule: Common law damages are available as of right; equitable remedies (specific performance, injunctions, rectification, rescission) are discretionary. Source: EAA, A Study Guide to Estate Agency Law and Practice, Part 3 (remedies); as at Oct 2026

Common mistake

Thinking equitable remedies are mandatory in some cases.

Practise more EAQE Law of agency, contract and negligence questions

Exam-style questions with worked answers, then full timed mocks. Free to start.

Start practising →

Study note: Law of agency, contract and negligence EAQE practice questions and mock exams

Related EAQE questions

A vendor says 'the flat has never had water seepage', knowing it has. The buyer relies on this and buys. What type of misrepresentation is it?An agency's property brochure states: 'All information is for reference only and we accept no responsibility for any error.' A buyer relies on a wrong saleable area in it. Does the disclaimer protect the agency?A vendor says nothing about a long-running dispute with neighbours over noise, and the buyer does not ask. Later the buyer learns of it. Which statement best describes the general legal position?

Build a daily practice habit : a few exam-style questions a day, with worked answers. Free to start.

Start practising →

An original question written to the published EAQE syllabus. Figures in the explanation carry their effective dates; check them against the current law before relying on them. Independent exam practice. Not affiliated with or endorsed by the Estate Agents Authority (EAA) or the examination administrator.