The Equity

Thomas Sim PEA2066

Q.
Define "Equity law" or "Law of Equity".

A.

(1) Fairness or natural justice. 
(2) That body of rules formulated and administered by the Court of Chancery to supplement the rules and procedure of the common law. 
(3) A right to an equitable remedy, e.g. for fraud, mistake or where an estoppel arises.

The common law developed in a very rigid way based as it was on a system of writs. If a claimant's case did not fit within the strictures of a writ already on the register then they were denied a remedy.

Aggrieved claimants would then petition the King and the Chancellor would hear the case. This was the origin of the Court of Chancery.

Equity served to supplement the common law. It is not an entire system in itself. Instead equity enhanced the common law by creating new rights and remedies. Examples of rights include trusts and mortgages and examples of remedies include injunctions and specific performance.

There are basic rules around which equity have been developed. There is no definitive expression of them but the following are commonly found:
  1. Equity acts in personam
  2. Equity acts on the conscience
  3. Equity will not suffer a wrong without a remedy
  4. Equity follows the law
  5. Equity looks to the intent rather than the form
  6. Equity looks on that as done which ought to be done
  7. Equity imputes an intent to fulfil an obligation
  8. Equitable remedies are discretionary
  9. Delay defeats equity
  10. He who comes to equity must come with clean hands
  11. He who seeks equity must do equity
  12. Equity regards the balance of convenience
  13. Where there are equal equities, the law prevails
  14. Where there are equal equities, the first in time prevails
  15. Equity, like nature, does nothing in vain
  16. Equity never wants for a trustee
  17. Equity aids the vigilant
  18. Equality is equity
  19. Equity will not assist a volunteer
  20. Equity will not permit a statute to be a cloak (or an engine) for fraud
Ref:
http://nuweb2.northumbria.ac.uk/bedemo/sources_of_english_law/page_06.htm