21 - Equity Flashcards
What is meant by Equity?
Equity means “fairness” in ordinary language.
As a legal term it began as a set of special rules founded and administered by the old Court of Chancery.
Why was equity created?
It was created because the original common law often failed to ensure fairness or justice, and people would appeal to the King’s Chancellor who as “keeper of the King’s conscience” could help.
History…
Claimants petitioned the King as the ‘fountain of justice’
Function delegated to the Lord Chancellor who became known as the ‘keeper of the King’s conscience’ leading to the Court of Chancery evolving.
The Chancellor dealt with such appeals in the Court of Chancery.
This court decided cases in the light of justice and fairness rather than the strict letter of the law.
The Court of Chancery established special remedies such as injunctions that are very important today. They are sometimes known as ‘equitable remedies’.
Equity was administered by the Court of Chancery until 1873, when the Judicature Acts merged the common law courts and the Court of Chancery. Courts today can award both common law and equitable remedies.
