Introduction

Ever faced a problem where money alone won’t fix things? That’s where equitable relief steps in. Instead of just writing a check, this legal remedy is about fairness—forcing someone to either do something specific or stop doing something harmful. For owner-managers of small to medium-sized businesses, understanding equitable relief is crucial when a breach of contract or dispute needs more than just financial compensation to set things right.

Why is equitable relief important?

Equitable relief is crucial because it addresses situations where financial compensation won't fully resolve the issue. Sometimes, what you really need isn’t money but an action—like getting a supplier to fulfill a contract they’re trying to back out of or stopping a competitor from using your trade secrets. In these cases, equitable relief can step in to provide a solution that’s more about fairness than financial damages.

Equitable relief can take different forms, such as:

• Injunctions: A court order stopping someone from doing something harmful, like using your confidential information or breaking a non-compete agreement.

• Specific performance: A court order requiring someone to fulfill their contractual obligations, like delivering goods or completing a service they promised.

Example of equitable relief

Let’s say you run a small manufacturing business, and you’ve signed a contract with a supplier to deliver a critical component needed to complete your product. Suddenly, the supplier decides they want to sell to a bigger competitor instead, leaving you in a tough spot. Financial compensation might not be enough here because you need those parts to meet your own commitments.

This is where equitable relief comes in. You could ask the court for specific performance, requiring the supplier to stick to the original agreement and deliver the parts as promised. This way, you’re not left hanging and can keep your business running smoothly.

How understanding equitable relief can help you

Knowing what equitable relief is and how it works can help you protect your business interests when financial compensation isn’t enough. If you find yourself in a situation where you need more than money to set things right, equitable relief could provide the solution you need. It can be a powerful tool for ensuring fairness, maintaining business relationships, and upholding your rights.

How Cobrief can help

Cobrief automates the review of business agreements in minutes for small to medium-sized businesses. Save time, cut legal costs, and sign your contracts with confidence.

Upload your contract to Cobrief's AI contract review software, click review, and you'll get it screened for risks in plain English, helping you decide if you want to sign, reject or negotiate the contract—or escalate it to a lawyer.

Conclusion

Equitable relief is all about fairness and ensuring that the right actions are taken when a simple payout won’t do. It’s particularly useful in cases where specific actions or the stopping of certain behaviors are needed to protect your business. By understanding equitable relief, you can better navigate situations where money isn’t the only answer, and protect your business from unfair practices or broken promises.

So, next time you’re facing a contract dispute or a competitor’s overreach, remember that equitable relief is an option that can help keep your business on track.