Legal Definitions - adequacy test

An adequacy test is a principle used in law to determine whether equitable relief, such as an injunction, is necessary when no adequate legal remedy, such as monetary damages, exists. This principle is also known as the irreparable-injury rule.

For example, if a company is accused of stealing trade secrets from a competitor, the competitor may seek an injunction to prevent the company from using the stolen information. However, if the competitor can prove that they will suffer irreparable harm if the company continues to use the information, the court may grant the injunction. On the other hand, if the competitor can be adequately compensated with monetary damages, the court may not grant the injunction.

Although the adequacy test is still cited in court cases, it is not always followed literally. Some lawyers and scholars believe that the rule favors legal remedies over equitable remedies, and that the definition of adequacy is subjective and open to interpretation.