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available as of right. In contrast, specific performance, which originated in the courts of equity, is said to
be available at the court’s discretion. The availability of equitable relief is bound by a distinct series of
considerations sometimes referred to as a maxim. One such maxim is that ‘he who comes to equity
must come with clean hands’; that is to say, he who seeks equitable relief must himself not be guilty of
some form of misconduct or sharp practice. You will see the particular restrictions placed upon the
granting of equitable relief as you proceed through the module guide (see, for example, rescission for
misrepresentation).
A statement of intention In this instance, one party states that he intends to do something. This differs
from an offer in that he is not stating that he will do something. The case of Harris v Nickerson [1873] 37
JP 536 illustrates this point. The auctioneer’s advertisement was a statement that he intended to sell
certain items; it was not an offer that he would sell the items
It is important to remember (see Section 1.4.3) that it is not the subjective intentions of the parties that
determine the legal effect of their words or actions but the reasonable inference that they would
support. This is the so called ‘objective’ theory of agreement associated with Smith v Hughes (1871)
Damagres
3 Consequential losses include those that covered under special damages, that is, such losses are
reasonably be supposed to have been in the contemplation of both parties, at the time they made the
contract, as the probable result of the breach of it.54 54. Hadley v. Baxendale (1854) 9 EX 341
The plaintiff acquired land for an improvement scheme and sold part of it to
the defendant, who covenanted to demolish houses on it and build new ones.
The
demolition was carried out and plans for new houses approved. The defendant
then
and the plaintiff could not get the work done by employing another
contractor.