Equity Follows the Law

In: Social Issues

Submitted By bookeater
Words 1570
Pages 7
Equity follows the law. Discuss

Equity has no clash with law neither it overrides the provisions of law. Nor it is the enemy of law. It adopts and follows the basic rules of law. It is said that equity is not a body of jurisprudence acting against the law but rather a supplement to law. it is a well-known rules that equity follows the analogies of law The equity came not to destroy the law but to fulfil it , to supplement it , to define it .Equity respects every word of law. Equity is intended to supplement the law and not to supersede it. Maxims of equity are principles developed by the English Court of Chancery and other courts who have administered equity jurisdiction, including the law of trusts. They were expressed in Latin but are translated into English. The role of the maxims is simple , they are general principles which can be deviated from specific cases.
“He who comes into equity must come with clean hands.” This is one of the many maxims of equity. This maxim “bars relief”* that anyone guilty of improper conduct in the matter at hand .It operates to prevent any affirmative recovery* for the person with “dirty hands” no matter how unfairly the person’s adversary has treated him or her . The maxim’s purpose is to protect the integrity of the court. This rule is not meant to punish carelessness or a mistake .Another notable maxim is “Equity looks on that as done which ought to be done” , this maxim means that when individuals are required , by their agreements or by law to perform some act of legal significance , equity will regard that act as having been done as it ought to have been done , even before it has actually happened. Another maxim says “Equity will not complete an imperfect gift” which explains that if a donor has made and imperfect gift namely lacking the formalities required at common law , equity will not assist the intended donee*, this…...

Similar Documents

Private Equity

... Venture Capital and Private Equity Contracting This page intentionally left blank Venture Capital and Private Equity Contracting An International Perspective Douglas J. Cumming Associate Professor and Ontario Research Chair, York University – Schulich School of Business, Toronto, Ontario, Canada Sofia A. Johan Senior Research Fellow, Tilburg Law and Economic Centre (TILEC), Tilburg, The Netherlands AMSTERDAM • BOSTON • HEIDELBERG • LONDON • NEW YORK • OXFORD PARIS • SAN DIEGO • SAN FRANCISCO • SINGAPORE • SYDNEY • TOKYO Academic Press is an imprint of Elsevier Academic Press is an imprint of Elsevier. 30 Corporate Drive, Suite 400, Burlington, MA 01803, USA 525 B Street, Suite 1900, San Diego, California 92101-4495, USA 84 Theobald’s Road, London WC1X 8RR, UK Copyright © 2009, Elsevier Inc. All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording, or any information storage and retrieval system, without permission in writing from the publisher. Permissions may be sought directly from Elsevier's Science & Technology Rights Department in Oxford, UK: phone: ( 44) 1865 843830, fax: ( 44) 1865 853333, E-mail: permissions@elsevier.com. You may also complete your request online via the Elsevier homepage (http://elsevier.com), by selecting “Support & Contact” then “Copyright and Permission” and then “Obtaining Permissions.” Library of Congress......

Words: 236635 - Pages: 947

Maxim Follows Law

...Question 1: Explain the maxim “Equity follows the law”. Meaning Equity: An English law that was developed hundreds or years ago, this law was created as people would complain to the king that the common law was harsh and prevented justice from prevailing. Equity is constructed on a judicial estimate of fairness as opposed to the inflexible and harsh rules of the common law. When finding a solution to an issue or problem in equity, the court of equity will first always seek the legal position, and then take their lead from the common law. The maxim ‘Equity follows law” supports the fact that a court of equity has no intent to override the common law., but simply works as a supplement to the common law, the maxim clearly states that equity will not allow a remedy that conflicts with law. Cases The following case is an excellent example on how equity follows the law. Graf v. Hope Building Corporation Mr. Graf was given a mortgage on the Hope Corporation’s property. Hope was required to pay quarterly payments of interest to Mr. Graf. The bookkeeper for Hope discovered that she accidently sent a check for a particular quarterly interest payment that was $400 short. Mr. Graf was then immediately notified of the mistake and was told by the bookkeeper that the issue will be resolved as soon as the president of Hope returns from holiday, as he is the only individual authorized to sign checks for Hope Corporation. When the president of Hope Corporation......

Words: 429 - Pages: 2

How to Restructure Society so That All Citizens Follow the Moral Law

...How to Restructure Society So That All Citizens Follow the Moral Law A society is an organized group of persons living in a particular region and having shared customs, laws, and organizations (google.com). In other words, the community we live in and the people we interact with are all part of our society. Like professor Robinson said, the first society we are in, is our family. A family can be composed of a mother, father, brothers and sisters. It can also be a single mother and her children or a single father and his children. There are many ways to describe what a family is. In other words, it is the first people who surround you when you are first born and as you grow up. It is at this point where a child begins to learn ethical behavior and moral value. What is Ethics? The dictionary definition for ethics is “a theory or system dealing with values relating to human conduct, with respect to the rightness and wrongness of certain actions and to the goodness and badness of the motives and ends of such actions” (Dictionary.com). Our laws, rules, procedures, and policies are founded on ethics. Therefore, it is important that families have good ethics; after all they will be passing it down to the next generation. Family has a very important role in restructuring society so that all citizens follow the moral law; it is with the family where it starts in order to change society. It is here where a child learns to get along with others and......

Words: 1929 - Pages: 8

Lead or Follow

...Home Page » English and Literature Conformity and Rebellion In: English and Literature Conformity and Rebellion “Lead or Follow” Should I conform? Should I rebel? This has and always will be, a constant battle struggled individually, or as a society. A certain amount of conformity needs to exist in life in order to avoid disorder. This is the reason we have laws. Take those laws, rules, control, or even expectations, to an extreme, and some form of rebellion is probable. Struggle with these opposites, and you have a catalyst for war, or perhaps, being fired from a job. Literature represents life, and this theme can be found at the root of many literary works. “The Lottery,” by Shirley Jackson, reflects blind conformity by the villagers with a hint of rebellion. Every June 27th the lottery takes place; the prize for winning is death. The villagers believe sacrificing one of their own will ensure a good harvest. The villagers are so blasé about the lottery it is said “the whole lottery took less than two hours, so it could begin at ten o’clock in the morning and still be through in time to allow the villagers to get home for noon dinner” (339/1). We get our first sense of possible rebellion when Mr. Adams says, “over in the north village they’re talking of giving up the lottery” (342/31) Mrs. Adams adds, some villages have already given it up. Old Man Warner’s retort is, “Pack of crazy fools…Lottery in June, corn be heavy soon. First thing you know, we’d......

Words: 358 - Pages: 2

Equity and Equality

...Professor Black English 1101 9 Nov 2013 Equality Vs. Equity: People and The Law Throughout the history of mankind and specially in modern times, many struggles emerged from people’s suppressed anger and hatred of the feudalism and the ruling monopolistic powers, and in their effort to create a system most suitable to their wants and desires and what they take as “values” and “rights” they stumbled on what is to this very day one of the most important and complicated dilemmas of human philosophy: how do we choose between equality and equity? What is the better choice? Do we prefer similarity or justice? And many questions as such, and as other ideas and ideologies go, it remains a major dispute among masses and masses of workers, farmers, countrymen as well as land owners, businessmen and politicians alike, and in many ways it is quite normal, the essence of both those ideas appear the same and are often put in the same category, but in reality they very far from each other on many levels and points of view and they represent systems that do show resemblance but are almost entirely different in functionality and order. Nancy Kranich; Based upon Jorge Schement, "Imagining Fairness: Equality and Equity of Access in Search of Democracy," in Nancy Kranich, Libraries and Democracy, Chicago, IL: American Library Association, 2001: 15-27. Nancy Kranich’s education is as follows: MA, Library Science, University of......

Words: 1001 - Pages: 5

Equity

...Introduction According to Macmillan online Dictionary Equity is a legal system for obtaining a fair result when existing laws do nor provide a solution.(*1).”What is equity and why does the English legal system recognize a body of rules known as equity and maxims of Equity are the major topics I am dealing with in this project. The word ‘equity’ is susceptible to a number of different meanings. In one sense the word means what is ‘fair and just’ and is, therefore, undistinguishable from the general concern of any system of laws, which is that all laws should be fair and just. However, another somewhat narrower sense of the word is that equity is that specific body of law which supplements the common law and is invoked in circumstances where the conduct of a defendant is deemed unconscionable. Where such unconscionable conduct has arisen, the role of equity is to temper the rigor of the common law by the award of an appropriate equitable remedy. This project examines what is Equity how it came into exist, its relationship with the common law and examines some of the important maxims of equity. Acknowledgement I would like to express my special thanks of gratitude to my teacher Anil R. Nair as well as our Vice Chairman Prof. (Dr) N.Balu who gave me the golden opportunity to do this wonderful project on the topic Equity, which also helped me in doing a lot of research and I came to know about so many new things I am really thankful to them. Secondly I would also like......

Words: 3837 - Pages: 16

Equity

...Equity Theory and Time: A Reformulation Author(s): Richard A. Cosier and Dan R. Dalton Source: The Academy of Management Review, Vol. 8, No. 2 (Apr., 1983), pp. 311-319 Published by: Academy of Management Stable URL: http://www.jstor.org/stable/257759 . Accessed: 19/02/2014 05:31 Your use of the JSTOR archive indicates your acceptance of the Terms & Conditions of Use, available at . http://www.jstor.org/page/info/about/policies/terms.jsp . JSTOR is a not-for-profit service that helps scholars, researchers, and students discover, use, and build upon a wide range of content in a trusted digital archive. We use information technology and tools to increase productivity and facilitate new forms of scholarship. For more information about JSTOR, please contact support@jstor.org. . Academy of Management is collaborating with JSTOR to digitize, preserve and extend access to The Academy of Management Review. http://www.jstor.org This content downloaded from 130.220.71.24 on Wed, 19 Feb 2014 05:31:53 AM All use subject to JSTOR Terms and Conditions 'Academy of ManagementReview, 1983, Vol. 8, No. 2, 311-319. Equity Theory and Time: A Reformulation RICHARD A. COSIER DAN R. DALTON Indiana University Perceptions of inequity generally have been associated with substantive employee responses in the workplace. These effects have been demonstrated in the laboratory and, to a lesser extent, in field settings. The most commonly used formulation of equity theory relies on a static......

Words: 5961 - Pages: 24

Follow the Leader

...David Dinkins English 102 Ashley McWaters 7/3/14 No where in the world is there a movement of animals as immense as the wildebeest migration, over two million animals migrate from the Serengeti National Park in Tanzania to the greener pastures of the Maasai Mara National Reserve in Kenya during July through to October. The migration has to cross the Mara River in the Maasai Mara where crocodiles will prey on them. This is one of the highlights as the animals try and cross the Mara River alive. The wildebeest in this photograph have discovered that the threat of amphibious predators is all too real. The two in the lead are narrowly escaping the gaping maw of a hungry croc, as the two behind follow the ones in front. Strangely enough, the two wildebeest just behind the crocodile don’t seem to comprehend the ever present danger. They’ve been following other wildebeest in the herd for so long that they know no other existence but as a follower. Which brought up in my mind this question: “why do they not see the danger”? After doing a bit of research on the migration tactics of the native species, I discovered an interesting phenomenon. In the Maasai Mara wildebeest will be hunted, stalked, and run down by the larger carnivores. The Maasai Mara also has one of the largest densities of lion in the world and is no wonder this is the home of the BBC wildlife channel’s Big Cat Diary. The fact that danger exists on all sides should keep the wildebeest aware at all times.......

Words: 1080 - Pages: 5

Common Law and Equity

...Compare and contrast common law and equity. The distinction between common law and equity is better understood when the history of the two are examined. Common Law is the law of the land created by the judiciary. “According to Blackstone, the common law is that “ancient collection of unwritten maxims and customs which have ‘subsisted immemorially in this kingdom.” These principles are revealed by the courts of law “through experience in the rendering of judicial decisions.” Common law is therefore, the overall accumulation of judicial decisions known as case law.” (Emerson 2009, 7). The common law has been described as the law of the common people of England. It emerged as the product of a particular struggle for political power (Business Law, Kelly, Hayward, Hammer & Hendy pg. 5). It can also be viewed as laws developed by judges through decisions of courts and similar tribunals that decide individual cases, as opposed to statues adopted through the legislative process or regulations issued by the executive branch. Within common law judges decisions are binding, just as other laws does, to ensure consistent treatment. In cases where parties disagree common law courts look to past precedential decisions of relevant courts. However if courts find that the case before hand is fundamentally different from previous cases, the judge have the authority and duty by law to set a precedent, which will become binding in future courts. Common law can be traced back to......

Words: 769 - Pages: 4

Law Equity

...USIU BUS 3010 BUSINESS LAW EQUITY The Maxims of Equity Maxims of Equity— As we have seen in the last chapters, the Courts of Chancery were governed by the principles of Equity. The Equity, again we have seen earlier, is not a single system of law bat a collection of appendices, But the principle of Equity which were followed by the Court of Chancery, while giving equitable reliefs, were not arbitrary. On the other -hand they were based upon those principles of right and obligation which have Juridical relation with aid application to the events aid transactions of society. Many of these general principles constituting the ultimate sources of equitable doctrines are enbodied in its twelve mixims of Equity. - . According to Salmond, “Maxims are proverbs of the law and provide useful means for the expression of leading doctrines of the law in form which is brief and intelligible. According to Prof. Hanbury, “They are the fruit of observation of developed doctrine and the ideas embodied in them are far older than their articulate expression.” The twelve Maxims of Equity which embodied the principles of Equity justice are as under: 1) Equity will not suffer a wrong without a remedy. 2) Equity follows the law. 3) Where equities are Equal, the law shall prevail. 4) Where the Equities are equal, the first in time shall prevail. 5) He who seeks Equity must do Equity. 6) He why comes to Equity, must come with clean hands or He that...

Words: 316 - Pages: 2

Equity

...CHAPTER 17 Does Debt Policy Matter? Answers to Practice Questions 1. a. The two firms have equal value; let V represent the total value of the firm. Rosencrantz could buy one percent of Company B’s equity and borrow an amount equal to: 0.01 × (DA - DB) = 0.002V This investment requires a net cash outlay of (0.007V) and provides a net cash return of: (0.01 × Profits) – (0.003 × rf × V) where rf is the risk-free rate of interest on debt. Thus, the two investments are identical. b. Guildenstern could buy two percent of Company A’s equity and lend an amount equal to: 0.02 × (DA - DB) = 0.004V This investment requires a net cash outlay of (0.018V) and provides a net cash return of: (0.02 × Profits) – (0.002 × rf × V) Thus the two investments are identical. c. The expected dollar return to Rosencrantz’ original investment in A is: (0.01 × C) – (0.003 × rf × VA) where C is the expected profit (cash flow) generated by the firm’s assets. Since the firms are the same except for capital structure, C must also be the expected cash flow for Firm B. The dollar return to Rosencrantz’ alternative strategy is: (0.01 × C) – (0.003 × rf × VB) Also, the cost of the original strategy is (0.007VA) while the cost of the alternative strategy is (0.007VB). If VA is less than VB, then the original strategy of investing in Company A would provide a larger dollar return at the same time that it would cost less than the alternative. Thus, no rational investor...

Words: 2886 - Pages: 12

Equity

...confidence at AG’s future prospects had collapsed. Though market conditions played a role in recent drop in AG’s share price, an argument can be made that much of the company’s troubles were due to external market factors that were mostly beyond its control, a quick look at data in Exhibit 6 show that even with unfavorable market conditions, other companies were far better with higher multiples than AG. This meant external factors and market conditions were unlikely to be the only reason for low confidence in AG. There must be other unique factors that were reflected in AG’s share price. Perhaps, other companies had better strategies in place with greater earning potential in future than AG. Some of the potential internal factors are as follows:   PRODUCT DIVERSIFICATION AG’s competitors appear to have better diversified products that are less likely to be as severely impacted by a decline in the demand of greeting cards (Exhibit 6 continued). Heavy reliance on greeting card revenues by AG is likely to one of the main reasons for its low investor confidence. An analysis at Exhibit G show that company relied on nearly 75% on every-day seasonal card sales for its revenues that reinforces the notion that company’s offerings were not adequately diversified.   DECREASE IN MARGINS Another major factor was a decrease in profitability margins. With the company moving in e-card segment and low price discount store based card distribution, it was unlikely that even if the firm......

Words: 1337 - Pages: 6

Equity

...Introduction Equity developed to correct injustices, arising when the Common Law fell short of an ‘ideal’ regarding the provision of rights or remedies. Equity remains a relevant fixture of Australia’s legal system as the ‘… fundamental notions of equity are universal applications of principle to continually recurring problems; they can develop but cannot age or wither.’[1] The ‘undue influence’ doctrine and Garcia v National Australia Bank Ltd.[2] (Garcia) are illustrations of the High Court’s (the Court) historic and current attitude to equity. The High Court and Equity: A Historical Perspective Equity developed independently of the common law’s rigid structure, with cases resolved on individual bases with minimum reference to precedent. The Judicature Acts, aligned equity with the common law’s structure, causing the previously flexible equity to constrict to the common law’s judicial protocol. Equity in Australia has lost much of its original flexibility to the strict rules of precedent, a consequence of this ‘fusion’. Though equity’s flexibility has been constrained, significant developments in Australian’s legal context have occurred, including, the development of the principles like ‘estoppel by conduct’. Developments became rare with precedential growth, leading the Court to preference extending the application of accepted equitable doctrines or the determining previously restricted categories to include formerly extraneous situations, as alternatives to......

Words: 1224 - Pages: 5

Equity

...Express Trusts – How do they work? LAW351 Equity & Trusts, Week 12 Friday Agenda Today * Trustees’ Powers * Trustees’ Rights * Beneficiaries’ Rights * Remedies for Breach of Trust Trustees Powers * The trustee has the powers conferred upon him in the trust instrument. If any * First in the instrument then look at the act(statute), if that fails you go to the court and seek a court order Statutory Trustees’ Powers * In addition to these, trustees have a variety of statutory powers, including: * The power to sell property (s27(1)(a), (b), (c)); * The power to lease property (s27(1)(d), (e)) including the power to renew leases under s36; * The power to expend money to repair, maintain or renovate property (s30(1)(a)). * If money is expended to improve or develop the property then the amount is limited to $20 000 ($50 000 if the trustee is acting on the advice of someone who the trustee reasonably believes to be competent to advise on improvement and development). * unless the Court consents (s30(1)(c)); * The power to “make decisions” with respect to any debts. (s42); * The power to insure the trust property (s46) and the power to use any insurance payout to replace, repair, rebuild etc damaged trust property (s47(4)). Here it is the power to insure – in the last lectures we have looked at the duty to insure. * The power to raise money by selling or mortgaging trust......

Words: 9805 - Pages: 40

Common Law and Equity

...Equity has brought benefits to many litigants who would otherwise have been severely disadvantaged by the common law. Discuss, with reference to decided cases. William the Conqueror found England with no single system of law common to the whole country. The law was mainly sets of customary rules which differed from area to area. For example, in one area you could get away with stealing, in another it would be seen as crime. There was no such thing as ‘ The English Legal System” until William’s invasion in 1066. William developed the legal system and introduced many rules. William preserved some of the old customary laws and used them as a basis for common laws. He introduced the feudal system and King’s justice, these were made to help those who supported him. Williams used subtle tactics to gain control of the country. He introduced Curia Regis, who enforced a system of rules which applied to the whole country and became known as common law. Although common law was seen for the better, it came with few problems. One of the problems was the rigidity of the writ system. In common law, if someone wants their case to be heard in court, they have to fit their complaints into the existing writs. If the writs are not similar to the existing ones, the cases will not be heard in court. The system was formal and rigid, bound by 'no writ, no remedy'. So if there was no writ to deal with the plaintiff's claim then there was no remedy. In addition to that, the common law uses......

Words: 990 - Pages: 4