Additional Multiple Choice Questions on Indian Law of Equity
Question 21
The doctrine of constructive trust in equity is based on: a) Prevention of unjust enrichment b) Strict compliance with legal provisions c) Adherence to statutory law d) Contractual obligation
Answer: a) Prevention of unjust enrichment
Explanation: The doctrine of constructive trust ensures that no person benefits unfairly at the expense of another. It is an equitable remedy used to prevent unjust enrichment.
Question 22
The maxim “Equity will not suffer a wrong to be without a remedy” means: a) Every legal wrong has a remedy in equity b) Equity compensates for all losses c) Equity provides remedies even for illegal acts d) Equity does not provide remedies for non-legal wrongs
Answer: a) Every legal wrong has a remedy in equity
Explanation: This maxim reflects the fundamental principle of equity that ensures relief is available where common law fails to provide a remedy, as long as the case merits justice.
Question 23
Equity recognizes which type of rights? a) Legal rights only b) Equitable rights only c) Both legal and equitable rights d) Customary rights only
Answer: c) Both legal and equitable rights
Explanation: Equity complements the common law by recognizing and enforcing equitable rights, which focus on fairness and justice in addition to legal rights.
Question 24
Which of the following is NOT an equitable remedy? a) Specific performance b) Rescission c) Restitution d) Punitive damages
Answer: d) Punitive damages
Explanation: Punitive damages are a legal remedy intended to punish the wrongdoer, whereas equitable remedies such as specific performance, rescission, and restitution aim to provide justice and fairness.
Question 25
The concept of “equitable ownership” refers to: a) Legal title of a property b) Ownership recognized by equity, not law c) Shared ownership of a property d) Statutory transfer of property
Answer: b) Ownership recognized by equity, not law
Explanation: Equitable ownership refers to ownership that is recognized by equity, such as in trust law, where the trustee holds legal title but the beneficiary has equitable ownership.
Question 26
Which maxim of equity governs the rule of fiduciary relationships? a) He who seeks equity must do equity b) Equity delights in equality c) Equity will not permit a statute to be used as a cloak for fraud d) No one can take advantage of their own wrong
Answer: d) No one can take advantage of their own wrong
Explanation: This maxim ensures that fiduciaries act in the best interest of those they serve, and any wrongful behavior is not rewarded in equity.
Question 27
The concept of equitable estoppel is similar to which doctrine in common law? a) Doctrine of Ultra Vires b) Doctrine of Promissory Estoppel c) Doctrine of Res Judicata d) Doctrine of Election
Answer: b) Doctrine of Promissory Estoppel
Explanation: Both equitable estoppel and promissory estoppel prevent a party from denying their promises or previous conduct when another party has relied upon them to their detriment.
Question 28
Equity recognizes trusts under which principle? a) Legal obligations of ownership b) Division of legal and equitable ownership c) Statutory transfer of property d) Proprietary claims over moveable assets
Answer: b) Division of legal and equitable ownership
Explanation: Trusts are based on the principle that legal ownership is held by the trustee, while equitable ownership is held by the beneficiary, ensuring fairness in property management.
Question 29
The remedy of rescission is typically granted in cases of: a) Breach of contract b) Fraud, mistake, or misrepresentation c) Non-payment of consideration d) Non-fulfillment of statutory requirements
Answer: b) Fraud, mistake, or misrepresentation
Explanation: Rescission is an equitable remedy that allows parties to cancel a contract when it was formed under circumstances of fraud, mistake, or misrepresentation, restoring them to their original position.
Question 30
Which of the following statements about equity is true? a) Equity creates new laws to override statutes b) Equity is rigid and adheres strictly to precedents c) Equity acts as a supplement to common law d) Equity always operates independently of the law
Answer: c) Equity acts as a supplement to common law
Explanation: Equity does not replace common law but acts as a supplement, filling gaps and providing remedies where the strict application of common law principles would lead to injustice.
Question 31
In the Indian legal system, equity is incorporated through: a) Statutory provisions b) Common law only c) Customary law only d) Religious laws
Answer: a) Statutory provisions
Explanation: In India, equity principles are often codified into statutes, such as the Specific Relief Act and the Transfer of Property Act, blending equity with legal frameworks.
Question 32
The equitable principle of “unjust enrichment” is applied to prevent: a) Breach of statutory law b) Financial losses due to negligence c) One party benefiting unfairly at another’s expense d) Contracts from being legally enforceable
Answer: c) One party benefiting unfairly at another’s expense
Explanation: The principle of unjust enrichment ensures that no individual is allowed to retain benefits that are obtained unfairly or at the expense of another.
Question 33
Which section of the Specific Relief Act, 1963, is based on the principle of equity? a) Section 10 – Specific Performance b) Section 13 – Damages for breach c) Section 17 – Contract termination d) Section 20 – Discharge of obligations
Answer: a) Section 10 – Specific Performance
Explanation: Section 10 provides for the specific performance of contracts, an equitable remedy granted when monetary compensation is inadequate to meet the ends of justice.
Question 34
An equitable charge on property is created by: a) A formal agreement only b) Deposit of title deeds and conduct of parties c) Written contract with legal provisions d) Transfer of possession
Answer: b) Deposit of title deeds and conduct of parties
Explanation: An equitable charge arises when property is used as security for a debt through deposit of title deeds or implied conduct, without formal registration.
Question 35
What is the role of equity in family law cases? a) Penalizing spouses for misconduct b) Enforcing strict rules of ownership c) Ensuring fairness in property division and custody d) Applying rigid rules for inheritance
Answer: c) Ensuring fairness in property division and custody
Explanation: Equity ensures fairness in family law matters, such as custody disputes and division of marital property, addressing unique circumstances and relationships.
Question 36
The equitable remedy of rectification is used to: a) Cancel a contract b) Correct mistakes in a written document c) Prevent a breach of contract d) Transfer ownership of property
Answer: b) Correct mistakes in a written document
Explanation: Rectification allows courts to correct errors in written contracts or documents to reflect the true intention of the parties involved.
Question 37
The doctrine of “election” in equity applies when: a) A party has multiple legal remedies b) A party must choose between inconsistent rights or claims c) A dispute involves more than one contract d) A party delays initiating legal proceedings
Answer: b) A party must choose between inconsistent rights or claims
Explanation: The doctrine of election prevents a party from simultaneously claiming inconsistent rights or benefits, ensuring fairness and consistency.
Question 38
Which of the following maxims ensures equality in equity? a) Equality is equity b) Equity follows the law c) Equity delights in diversity d) Delay defeats equity
Answer: a) Equality is equity
Explanation: This maxim reflects the equitable principle that, in cases of conflict, equity strives to ensure fairness by dividing benefits and burdens equally among parties.
Question 39
In equity, fiduciary relationships require: a) Strict adherence to statutory law b) Good faith and trust between parties c) Enforcement of criminal penalties d) Complete independence of parties
Answer: b) Good faith and trust between parties
Explanation: Fiduciary relationships are based on trust and confidence, requiring one party to act in the best interests of the other, as seen in trusteeship and agency.
Question 40
Which equitable doctrine provides relief for informal agreements partly performed? a) Doctrine of Ultra Vires b) Doctrine of Part Performance c) Doctrine of Laches d) Doctrine of Estoppel
Answer: b) Doctrine of Part Performance
Explanation: The doctrine of part performance allows enforcement of certain informal agreements if one party has acted substantially on the agreement, preventing the other from denying its validity.
