RULE OF EQUITY
In law, the term “equity” refers to a particular set of remedies and associated procedures involved with civil law. These equitable doctrines and procedures are distinguished from “legal” ones. A court will typically award equitable remedies when a legal remedy is insufficient or inadequate.
In modern practice, perhaps the most important distinction between law and equity is the set of remedies each offers. The most common civil remedy a court of law can award is monetary damages. Equity, however, enters injunctions or decrees directing someone either to act or to forbear from acting.
- Difference between Law and Equity
Equity allows courts to apply justice based on natural law and on their discretion. The most distinct difference between law and equity lies in the solutions that they offer.
- Concept of Equity
It is generally agreed that equity implies a need for fairness (not necessarily equality) in the distribution of gains and losses and the entitlement of everyone to an acceptable quality and standard of living. The concept of equity is well entrenched in international law.
- Origin
Two distinct system of law were administered by different tribunals at the same time in England till the year 1875. The older system was the Common Law and it was administered by the King’s Benches. A modern body of legal doctrine was developed and administered in the Court of Chancery as supplementary to and coercive of the old law, was the law of Equity. The two systems of law were almost identical and in harmony leading to maxim “Equity follows the law”. In other words the rules already established in the old Courts were adopted by the Court of Chancery and incorporated into the system of equity unless there were sufficient reasons for rejection or modification. In case of conflict, the rule of Chancery prevailed.
- Nature
- Equity follows the law. In case of conflict between law and equity, law prevails.
- An equitable right arises when a right vested in one person by the law should be vested in another in the view of equity as a matter of conscience.
- Where equities are equal, which is first in time will prevail.
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