Contracts I - Equity - Basics Flashcards
Historically, what prevented the three courts of law from addressing or resolving increasingly important commercial disputes?
It was the limitations of the writ system after the Magna Charta (1215)
After Magna Carta (1215), it became clear that the limitations of the writ system prevented the three courts of law from addressing or resolving increasingly important commercial disputes. As a result, what happened as the law didn’t work?
The people could appeal to the King’s prerogative courts, of which Equity was the most important
In what cases, historically, after the Magna Charta (1215) would Equity as the residual court hear cases?
The Court of Equity could hear any claim for which the remedy at law was not adequate (this requirement has remained until today)
Equity proceeds in personam, law proceeds in rem. What does that mean?
Equity Proceeds in Personam:
In Personam: This Latin term means “against the person.” In equity, legal actions are directed specifically against individuals or parties involved in a dispute. The court’s focus is on the personal rights and obligations of the parties.
Flexibility: Equity allows for flexibility in addressing unique circumstances and tailoring remedies to individual cases. It often considers fairness and the particular equities of a case.
Law Proceeds in Rem:
In Rem: This Latin term means “against the thing” or “regarding the property.” In common law (or law), legal actions are often directed at property or the status of a legal right itself rather than specific individuals.
Precedent-Based: Common law relies heavily on precedent, established rules, and statutes to determine legal outcomes. It follows established legal principles to resolve cases.
What are the four basic premises of equitable relief?
The remedy at law must be inadequate
There must be a proper legal or equitable basis for the claim
The parties and their claims must not be “unconscionable” or “inequitable”
The remedy must be “practicable”
Historically, in terms of procedures, what were the differences between equity and law?
Equitable proceedings were written, legal proceedings were oral
In equity, decisions of law and fact were made by one judge (“Equity varies with the length of the Chancellor’s foot”); at law, facts were decided by juries, and the law by judges
In case of conflict, what would prevail? Equity or law?
Equity.
The remedy at law must be inadequate. Give an example.
A unique, irreplaceable piece of artwork has been promised to a buyer in a contract. If the seller breaches the contract, the buyer might seek specific performance because money damages alone would be inadequate to replace the artwork’s unique value.
The parties and their claims must not be “unconscionable” or “inequitable”. Give an example.
This is interpreted as “unfair” or “disproportionate” or “causing hardship”. Equity is bound to justice and fairness. Equity will not enforce an oppressive contract. Such a case was McKinnon v Benedict (1968), which was discussed in class. A contract can be enforceable, but a court will not enforce an oppressive contract. In McKinnon v Benedict, the court found that the sought injunction would not be granted as it would bar the owners of the land from using their land.
The remedy at law must be inadequate - in what cases is that condition always fulfilled?
For contracts regarding the land. In such cases, the remedy at law is always inadequate.
