Maxims Of Equity

Question 1

Name the purpose of maxims

Answer 1

1. To show the historical development of equitable rule and procedures
2. The application of the rules for future purposes

Question 2

What are the maxims of equity

Answer 2

They are the general rules developed in the course of history and practice by the court of chancery administering equitable jurisdiction.

Question 3

Are maxims ridge ?

Answer 3

Maxims are not ridge formula but are the general rules used to fit individual cases

Question 4

What maxim is the root of all equitable jurisdiction

Answer 4

Equity will not suffer a wrong to be without enemy.

Question 5

Explain the maxim equity will not suffer a wrong without remedy.

Answer 5

Because of the lack of justice gotten from common law either equity came to give remedies to such loss. It is to cover the defect of common laws and every law at that time. This is the basis of all other Maxims. This can been seen tk three types of equitable jurisdiction
1. Original jurisdiction
2. Concurrent Jurisdiction
3. Auxiliary Jurisdictions

Question 6

Explain Original jurisdiction- trust

Answer 6

At common law the trustee was the absolute owner of the trust property. Equity came to remedy such defect by compelling the trustee to hold the property for the benefit of the beneficiary. This could be enforced through notice of a trust.

Question 7

Concurrent Jurisdiction- Equitable Remedies explain

Answer 7

At common law the only remedy for a breach of contract is damages however when that is not sufficient for the plaintiffs equity can order specific performance compelling the defendant to perform the contract and in nuisance they can grant injunction

Question 8

Explain auxiliary jurisdiction Equitable procedure

Answer 8

Auxiliary Jurisdiction - Equitable Procedure
The common law, court had no power to order discovery of documents in the possession of a party to an action. The court of equity did make such orders without which many wrongs would have been without remedies. At common law, judgment creditor could not levy execution on equitable interest. This was done by Court of Chancery (equity) appointing a receiver of the equitable interest, and if necessary, supplemented by an injunction restraining the judgment debtor from disposing of his interest.

Question 9

Equity follows the law, explain

Answer 9

The court of equity never came to abolish the common law. When the common law or statue governs a case and is direct and specific on a certain circumstance the law of equity cannot depart from it. Only in exceptional cases were it can depart

Question 10

Equity follows the law but when it see there is a lacuna in the law what does it do.

Answer 10

It does not blindly follow the law but it will provide a gap by providing a missing link.

Question 11

What does cestui que trust mean?

Answer 11

In a trust, the cestui que trust is the person who has an equitable interest in the trust

Question 12

What is another meaning of equity follows the law

Answer 12

Equity never challenged the common law as the basis of all the laws of the land. See Trans Bridges co ltd v survey international Ltd. Kayode jsc.
Indeed equity could have never existed without common law and would be meaningless if divorced from the rule of equity.

Question 13

Under equity follows the law, describe the relationship between common law and equity

Answer 13

Equity never came to override common law but it was created to supplement the rules under common law and to mitigate them. And will only disregard common law if it causes injustice and if the common law was archaic and excessively rigid equity will refuse to follow them.

Question 14

Where there is equal equity, the law shall prevail. What is this statement saying

Answer 14

This maxim governs the priority of competing interests in property on of which is legal and the other equitable.

Question 15

If two competing interests are equal in the eye of equity what will happen

Answer 15

Then the legal interest takes priority over the equitable interest.

Question 16

Why is the doctrine of service of notice so important to the maxim of when there is equal equity the law shall prevail

Answer 16

Thus, the consideration of the doctrine of notice is essential to the application of this maxim.The doctrine of notice has modified the conditions governing the transfer of interest in land. For example, a purchaser is required to investigate the title of his vendor before accepting a conveyance and parting with his money. Consequently, a purchaser is bound by all equities which he discovers on investigation or which he would have discovered if he had been diligent in his investigation.? His notice is either actual or constructive.

Question 17

Which maxim governs question of the priority of rival equitable claimants to the same property.

Answer 17

Where the equities are Equal, the first in Time Prevails.

Question 18

What does qui prior est tempore potior est jure mean?

Answer 18

The maxim is qui prior est tempore potior est jure: he who is earlier in time is stronger in law. Accordingly, where there are two competing equitable interests, the general rule of equity is that the person whose equity attached to the property first will be entitled to priority over the other.

Question 19

What problem was where the equities are equal, the first in time prevails solve.

Answer 19

It solves the problem of priority and conflict. When the equitable interest are equal the first in time will prevail. In other words the time of acquisition of interest is a deciding factor. The equitable interest ranks in order of creation.

Question 20

What maxim are the foundation of the doctrine of notice and mortgage of land

Answer 20

This maxim together with the maxim “where there is equal equity, the law shall prevail” provides the foundation for the doctrine of notice. They are also the foundation of the law on priority of mortgages of land.
This maxim concerns priority between two competing equitable interests in property.
The general rule is that equitable interests rank according to the order of their creation. A well-known case on this maxim is Cave v. Cave where it was held that (i) where there is equal equity the law prevails; and (ii) where the equities are equal, the first in time prevails.

Question 21

Explain the case of W. T Ejuetami v Mrs Benedicta O. Olaiya

Answer 21

In W.T. Ejuetami v Mrs. Benedicta O. Olaiya,” the Nigerian Supreme Court held, inter alia, that at law, as in equity, the basic rule is that estates and interest primarily rank in the order of creation,
“qui prior est tempore potior est jure”,
that is, he who is earlier in time is stronger in law. Again, where there are two competing equitable interests, the general rule of equity is that the person whose equity attached to the property first will be entitled to priority over the other. Where the equities are equal and neither claimant has the legal estate, the first in time prevails.

Question 22

What happens when the equities are not equal under when equities are equal the first in time will prevail

Answer 22

However, there are occasions where the equities are not equal. Thus, where the holder of the prior equitable interest has been guilty of fraud or gross negligence, he will be postponed to a later equitable incumbrancer. M Thus, in Rice v. Rice,” a vendor conveyed land to the purchaser without receiving the purchase money, yet signed a conveyance containing a receipt for the money. It was held that the vendor’s equitable lien for the unpaid purchase money was postponed to a subsequent equitable mortgagee with whom the purchaser had deposited the title deeds, the mortgagee having no notice of the lien.

Question 23

What did the case of Dearle v Hall state

Answer 23

The maxim does not also apply under the rule in Dearle v Hall 36 Priority under this rule is determined not by order of in which the assignments were created but by the order in which the successive assignees gave notice of their assignments to the debtor, trustee or other person liable to pay.

Question 24

What is the basis of He who seeks equity must do equity

Answer 24

The basis of this maxim is that to obtain an equitable relief, the plaintiff must be prepared to do equity. That is, equity in its popular sense of what is right and fair to the defendant. This is the rule of *unquestionable justice. “

Question 25

Explain the case of Lodge b National Union of investment and how it established He who seeks equity must do equity

Answer 25

The case of Lodge v National Union Investment Co., 38 illustrates this maxim. In that case, B borrowed money from M, an unregistered money lender, and mortgaged certain securities to him. The contract was illegal and void under the Money Lenders Act, 1900. B sued M for delivery up of the securities. Parker, J. refused to make the order except upon the terms that B should repay the money which had been advanced to him for B was seeking equitable relief, and must, therefore, do what was right and fair.

Question 26

What must a plaintiff under equitable relief be prepared to do

Answer 26

Thus, a plaintiff who secks equitable relief must be prepared to act fairly towards the defendant and vice versa. A plaintiff seeking an injunction will not succeed ifhe is unable or unwilling to carry out his own future obligations. This maxim is also the foundation of the equitable doctrine of election.

Question 27

What did Chappell v Time and Alhaji Ferdinand Ibekwe v Mrs Lucy Maduka

Answer 27

In Chappell v. Times Newspapers Lid,40 certain employees failed to get an equitable order of injunction to restrain their dismissal because they refused to undertake not to be involved in strikes. Similarly, in Alhaji Ferdinand Ibekwe v Mrs. Lucy Maduka,” the Nigerian Court of Appeal (Jos Judicial Division) held that apart from being morally despicable for a person who has benefited from an agreement to turn round and say that the agreement is null and void, no court oflaw would allow a person to benefit from his wrongdoing.

Question 28

What maxims establish the doctrine of election

Answer 28

He who seeks equity must so equity

Question 29

Define the doctrine of election

Answer 29

Doctrine of Election: the rationale of election is that no person shall be allowed to claim a benefit under a document and repudiate an obligation imposed by the same document.

Question 30

Define consolidation under he who comes to equity must do equity

Answer 30

Consolidation: this is the right of a person is whom two or more mortgages are vested to refuse to allow one mortgage to be redeemed unless the other or others are also redeemed.

Question 31

What is Notice to redeem a mortgage.

Answer 31

Notice to redeem a mortgage: if a mortgagor wishes to exercise his equitable right to redeem, he must give reasonable notice of his intention to the mortgagee.

Question 32

Explain an Equitable Lien.

Answer 32

(a) Equitable Lien: a lien is a right over property. A lien may arise where there is a contract to that effect or under a trust or under a mortgage or by subrogation. It may also arise where John believes that the property was his own and Yemi, knowing himself to be the true owner and knowing of John’s mistake, nonetheless stood by and allowed John to develop the property. 45

Question 33

What are the examples under those he come to equity must do equity.

Answer 33

1. Doctrine of election
2. Consolidation
3. Notice to redeem a mortgage
4. Equitable Lien.

Question 34

Which principle is related to the common law principle of ex turpi causa non oritur actio and its meaning

Answer 34

1. The doctrine of he who comes to equity must come with clean hands
2. ex turpi causa non oritur actio means No court will lend its aid to a man who founds his cause of action upon an immoral or an illegal act”. This common law principle, is known as the principle of “EX TURPI CAUSA NON ORITUR ACTIO” meaning that, “No action can arise from an illegal act

Question 35

He who comes to equity must come with clean hands examples are

Answer 35

This principle looks at the past conduct of the plaintiff in relation to the particular relief he is seeking. For example
1 a licensee may be barred from seeking estoppel if he has been guilty of misconduct.
2. A tenant cannot get specific performance of contract for a lease if he is already in breach of his obligation

Question 36

“he who has committed iniquity shall not have equity.Explain the statement above

Answer 36

By the maxim, the plaintiff must not only prepare to do what is right and fair, but must also show that his past record in the transaction is clean.48 The saying is this:
“he who has committed iniquity shall not have equity. “9 For example, a tenant whose lease has been forfeited for non-payment of rent cannot expect relief against the forfeiture if he has been using the premises as a disorderly house, nor can an equitable interest in land granted with a fraudulent purpose be enforced by a person tainted with fraud.!

Question 37

What does Awojugbabe Light Industries Ltd v PN Chinukwe & Anor

Answer 37

In the same manner, equity will not assist a party who has benefited from a transaction to plead illegality of such transaction to prevent the other party from benefiting from same. Thus, in Awojugbagbe Light Industries Ltd v. P.N. Chinukwe & Anor,? the Nigerian Supreme Court

Question 38

What did the court say in Alhaji Ferdinand Ibekwe v Mrs. Lucy Maduka,

Answer 38

Similarly, in Alhaji Ferdinand Ibekwe v Mrs. Lucy Maduka,$ the Court of Appeal held that it is morally despicable for a person who has benefited from an agreement to turn round and say that the agreement is null and void. No court of law should allow a person to benefit from his wrong doing.St

Question 39

A person seeking an equitable relief must conduct himself as

Answer 39

A person seeking an equitable relief must show that he has conducted himself in a fair and proper manner vis-à-vis the other party in relation to the transaction giving rise to the relief sought. He must show that his past record in the transaction is clean because he who has committed iniquity shall not have equity S For example, an infant who received money from a trustee having fraudulently misrepresented his age was not entitled to be repaid on reaching the age of21,% This maxim refersto behaviour prior to the suit as opposed to a future conduct.

Question 40

What does Craig v Craig establish in he who come to equity must come with clean hands

Answer 40

However, a party is not required to have led a completely blameless life but his record must be clean in relation to the equity claimed.” In Craig v. Craigs where a petitioner who had sought dissolution of her marriage with the respondent on the ground of latter’s adultery and cruelty had been guilty of adultery herself, but failed to disclose it; she was held to have acted in bad faith and was, therefore, not entitled to dissolution of the marriage.

Question 41

Vigilanti non dormientbus jura subveniut

Answer 41

Delay defeats equities or equity aids the vigilant and not the indolent is expressed in Latin words thus: “vigilantibus non dormienibus iura subveniunt.” It is a general principle of equity that a person will not be granted an equitable remedy if he has been guilty of undue delay in bringing his action. Such delay is known as laches.

Question 42

What can call forth an equitable court into activities under delay defeats equity

Answer 42

court of equity will refuse its aid to stale claims where a party has slept over his right and acquiesced for a great length of time. Nothing can call forth equitable court into activities but conscience, good faith, and reásonable diligence. Where these are wanting the court is passive and does nothing.!

Question 43

Is the doctrine of laches applicable in the statute of limitations

Answer 43

It should be noted that the doctrine of laches does not apply to cases governed by statutes of limitation, such as claims to redeem or to forclose mortgages of land or a claim by a beneficiary against a trustee for a non- fraudulent breach of trust.

Question 44

What happened in the case of Lindsay petroleum co v Hurd

Answer 44

claim, * It means that in such situation, limitation period and not laches will apply.
Wherever he tatutes apply, no delsy shortof the limitation period and not laches will apply. The doctrine of laches was stated in the case of Lindsay Petroleum Co. v. Hurd thus:
“Where it would be practically unjust to grant a remedy, either because the party has by his conduct done that which might fairly be regarded as equivalent to a waiver of it or where by his conduct and neglect he has, though perhaps, not waiving the remedy yet put the other in a situation in which it would not be reasonable to place him if the remedy where afterwards be asserted.”

Question 45

What happened in the case of Aganran v olushi

Answer 45

For instance, in Aganran y Olushi, the plaintiff had at one stage agreed for a consideration to ratify the sale (though he later resiled from the promise; the defendants had at one stage sued as owners of the land to eject trespassers to the knowledge of the plaintiff who did not interfere; the defendants had erected houses on the land and the plaintiff did nothing to stop them. The court held that all the above circumstances coupled with the three years delay in bringing the action amounted to laches.

Question 46

What maxim is the foundation of the doctrine of laches

Answer 46

Thus, equity aids the vigilant and not the indolent. This maxim is the foundation of the doctrine of laches, that is, where a person has slept over his rights, he cannot obtain equitable relief. Any reasonable explanation for the delay such as ignorance of facts, infancy or other disabilities of the plaintiff or fraud of the defendant will absolve the plaintiff.

Question 47

Explain equality is equity

Answer 47

Where two or more persons are entitled to an interest in the same property, then, the principle of equity is, equal division, if there is no good reasons for any other basis for division.? It is a long standing principle of equity that in the absence of sufficient reasons for any other basis of division, those who are entitled to property should have the certainty and fairness of equal division” for “equity did delight in equality”

Question 48

What are the applications of the maxim equality is equity

Answer 48

1. Presumption of tenancy in common
2. Equal Division

Question 49

Explain presumption of Tenancy in common

Answer 49

(a) Presumption of Tenancy in Common
The maxim has long been illustrated by equity’s dislike of a joint tenancy. At law, on the death of one joint tenant, the whole estate belongs to the survivor and the representative of the deceased takes nothing. Thus, there is no equality.
Equity, therefore, leans in favour of a tenancy in common, and will, in three. main cases reatioint tenancy astonancy in conte on pal ali la cuivori maincases, reason whole estate, he will hold in part as truste for the representative of the deceased.
First where property is purchased in unequal share; secondly, in case ofloan On mortgage by o persons, a tenancy in common will be implied Finallyan partnerships, it is presumed that they hold any property acquired by partners in their business as beneficial tenants in common.
A foint tenant may convert a joint tenancy into a tenancy in common by severance. Where two joint purchasers advanced equal amounts, equity will seat the joint tenancy as severed and thus, convert it into tenancy in common thereby excluding the right of survivorship. Any alienation of his interest by a joint tenant will bring about severance.

Question 50

Explain Equal division

Answer 50

6) Equal Division
This principle will apply where property is to be divided among certain people and there is no basis for such a division. For example, the balance in the joint account of husband and wife will be divided equally between the two in case of judicial separation.

Question 51

Equity looks to the intent rather than to the form

Answer 51

Court of Equity makes a distinction between a matter of substance and a matter of form. Equity insists that what is important is the substance and not the form and will, therefore, not allow a matter of form to defeat that of substance.”S Thus, in a contract of sale of land, once the completion date expires, there is a breach of contract in law but equity still allow completion within a reasonable time thereafter. Also, equity allows a mortgagor to redeem his mortgaged property even though redemption date has passed. The relevant saying is “once a mortgage, always a mortgage.” Equity will not follow technicalities at the detriment of the substance.

Question 52

In the case of Parkin v thorold what was established under the maxim equity looks to the intent rather than to the form

Answer 52

In Parkin v. Thorold,” Romilly, M. R. said:
“Court of equity made a distinction in all cases between
that which is a matter of substance and that which is a
matter of form; and if it finds, that by insisting on the form,
the substance will be defeated, it holds it to be inequitable
t0 allow a person to insist on such form and thereby defeating the substance.”

Question 53

Under equity looks at the intent rather then the form does common law formalities no longer apply

Answer 53

This does not mean that formalities may be ignored in equity, but rather, that equity
looks at the substance rather than the form.? In effect, non-compliance with the
rules of court or other procedural mistakes or irregularities will be treated as mere
irregularity which would not be sufficient to nullify the proceedings. 30 The overriding consideration is the interest of justice.

Question 54

Equity Looks On That as Done Which Ought to Be Done is the basis of what doctrine

Answer 54

This maxim is the basis of the doctrine of conversion, whereby an interest under a
trust for sale of land is regarded as an interest in the proceeds of sale. Where
there is a specifically enforceable obligation, equity regards the parties as already in the postion which they would be in afer perioraneant he obligation. Foresample, performance. Therefore, in equity, a specifically enforceable contract for a lease creates an equitable lease.

Question 55

Walsh v Lonsdale under equity looks on that as done which ought to be done

Answer 55

Thus, in Walsh v. Lonsdale,$ the landlord agreed in writing to grant to the tenant (plaintiff) a lease for 7 years at a rent. No formal deed of lease was executed by the parties as required by law for any lease exceeding 3 years. When tenant defaulted in payment, the landlord distrained for rent. The tenant brought this action for illegal distress and an injunction.

Question 56

Why did the plaintiff action fail in savage b sarrough under equity looks as that as done which ought to be done

Answer 56

Similarly, in Savage v. Sarrough, &7 the plaintiff and his brother were the owners of certain land. The defendant obtained from the plaintiff’s brother a written agreement, not under seal, for a lease of S years. The plaintiff in this action claimed recovery of possession of the property. It was held that in equity, the lease though not under seal, is deemed to have been effectively granted. The plaintiff’s action, therefore, failed.

Question 57

Where does the importance of this maxim equity looks as that which is done as it ought to be done

Answer 57

The importance of this maxim lies in the area of property law. The division of property into personality and reality is important when question of distribution of property arises. For example, if property is directed to the converted from one form to another, the property in equity is regarded as converted in form from the moment the direction becomes effective. Equity treats a contract to do a thing as if the thing were already done.

Question 58

Explain equity imputes as intention to fulfil an obligation

Answer 58

Where a person is under an obligation to do an act, and he does any other act, which is capable of being regarded as a fulfillment of his obligation, the latter act will, prima facie, be so regarded.”

Question 59

What maxim is this example under

For example, if a husband covenants with the trustee of his marriage settlement after his marriage, that he will buy a property at Sango, Ibadan and he will settle it upon the trust, but after the marriage, he did buy the property at the said Sango, Ibadan and conveys it to himself and dies without bringing the property into the marriage settlement, equity will regard the purchased property as having been bought by the husband in pursuance of his covenant.

Answer 59

Equity imputes an intention to fulfil an obligation. In such a situation, equity will put the most favourable construction on his motives, and he will be deemed to have done the act in performance of his obligation or duty, and the property will, therefore, be subjected to the trusts of the marriage settlement.

Question 60

What maxim is the basis of performance and satisfaction

Answer 60

Equity will impute an intention to fulfil a motive

Question 61

What does equity act in personant

Answer 61

One of the most important characteristics of jurisdiction of the court of chancery was that its decrees were directed in personam, that is, against the defendant personally°3 as opposed to in rem which is against his property.
The maxim also means that in property matters, the court of Chancery would act against the person of the defendant by committing him to prison for contempt if he failed to obey a decree. Later, order of sequestration (taking legal possession of assets) developed. Other convenient methods of enforcing the decree also evolved, i.e., an order for the payment of money can be enforced by writ of fierifacias (Fifa).