origins and development of trusts

Question 1

what is equity

Answer 1

a distinct body of rules that seeks to introduce ethical values into the legal norms
introduced by judges in the chancery divison of HC

Question 2

what is the purpose of equity

Answer 2

modified the common law to ensure that the objectives of the law is not defeated by a strict adherence to legal rules
it does this by ensuring remedies solves claimants problems
also ensures that a person cannot rely on law in order to avoid an obligation
promotes fairness

Question 3

Earl of oxfords case

Answer 3

lord chancellor- “mens actions are so divers[e] and indefinite, that it is impossible to make any general law which may aptly meet with every particular actm and not fail in some circumstances”
the idea that the law cannot account for every action someone may do, therefore equity is required to fill this gap
purpose of equity “to soften and mollify the extremity of the law”

Question 4

criticisms of equity

Answer 4

3 main:
issue with the courts straying into discussions of dishonesty which is subjective
causes uncertainty- 2 ways in which the courts may enforce promises
subject to views of the individual judge on the case

Question 5

the chancellors foot criticism

Answer 5

in law we law we have a measure
but in equity the measure is against the chancellors foot (the conscience of the chancellor and what they believe is fair)
subjective
“for law we have a measure, know what to trust to; equity is according to the conscience of him that is chancellow” John selden, in pollock, table talk of john seldem 1927

Question 6

walsh v lonsdale 1881

Answer 6

an example of where equity steps in to remedy a cituation that would be unfair otherwise
parties failed to put leesing agreement into a deed, at common law leese wasnt valid, landlord tried to enforce his right to payment of rent and tenant sought injunction
court held wasnt valid leese but made a contract for a leese, equity sees this as creating the leese and landlord could exercise lees

Question 7

equitys darling

Answer 7

somebody who believes they are a beneficiary of an equitable right cannot enforce this right against a bone fide purchaser of the legal estate (someone who in good faith, acquired legal estate without inheriting via a purchase) for value without notice (with no knowledge that they had an interest in the property)

doctrine of notice- bone fide purchaser of a legal estate for value takes priority over an existing equitable interest