Week 2 Important Flashcards
- What is the judiciary and what is its role?
The Courts – role is to apply, interpret and make law.
Equity
Equity developed because of perceived (and actual) rigidities and injustices in the common law in medieval times. Litigants appealed to the Lord Chancellor who would sometimes intervene. This evolved into a set of rules called equity administered in the Court of Chancery.
Three important creations of equity:
Specific performance
Injunction
The trust
Specific performance
At Common Law the remedy for breach of contract is damages or compensation. Equity will, for some kinds of contract, order the party in breach, to actually perform the contract. This is called specific performance.
Injunction
An injunction is a court order not to do or to do something. It is issued at the discretion of the court if one party is in breach of the law.
The trust
Only equity recognises and will enforce the beneficiaries interest in a trust. This is equity’s most important creation. They are in very common use and it is important that accountants understand them.
Common Law and Equity clash
When the rules of the common law and equity clash, equity prevails. Both systems are now administered and applied in the same courts.
Distinguish between common law and statutory law
Common Law here means unenacted law. Statutory Law means enacted law. Statutes must be interpreted by judges, hence case law is still important here. Also statutory law is “silent” in many areas of law. For example, most of contract law is governed by hundreds of years of precedents (the rules that have evolved from the cases). Negligence too is largely governed by case law.
Distinguish between common law and civil law systems of law
Civil Law refers to the other most common system based on the French system. Napoleon ordered the codification of French Law. This was achieved in 1804. Codification means that, theoretically, the entire law is written down and enacted as a series of very detailed statutes. The common law system also uses statutes extensively but a significant proportion of the law is not in statutes but decided by judges in cases. In civil law countries the role of judges is to interpret and apply the code. Judges are still influential but their role is different. Systems based on the civil law, in the sense that they are based on codes influenced by the French code, have been adopted by many countries throughout the world.
Civil law
Civil law, in this context, deals with private wrongs between individuals. A wronged individual, a plaintiff, sues another individual, a defendant in a court, for an alleged wrong against the plaintiff. If the plaintiff proves the case he/she usually obtains compensation for damages from the defendant, or in some cases may be entitled to an injunction. It is up to the wronged individual whether to sue or not. The state does not interfere. If the individual does take action and the parties cannot settle the matter, the state provides a forum, usually a court. Examples of civil wrongs are breach of contract, trespass, nuisance, assault, conversion, conspiracy and negligence.
Criminal law
Criminal law deals with those wrongs which are considered wrongs against the entire community or the State and not just against an individual. Indeed a crime may not be committed against an individual at all. A person (the defendant) accused of a crime may be prosecuted, in almost all cases by the State, in some form or other. If found guilty the defendant can be punished by the State by, for example, being sentenced to a term of imprisonment, a fine, a community work order or being placed on a good behaviour bond. The State may prosecute even where a wronged individual does not wish it. It may often choose not to do so in such circumstances for minor offences. Examples of crimes are treason, murder, manslaughter, assault, rape, and theft.
The same act may be at once a crime and a civil wrong.
For example many cases of conversion may also be theft. In such cases the individual wronged may sue in a court for damages for the loss of property while the State may launch a separate prosecution against the wrongdoer to seek punishment. Where someone is assaulted, the State may bring a criminal prosecution against the defendant seeking some form of punishment; the victim may also seek monetary damages (for such things as medical expenses, hospital expenses, loss of wages from missed employment and pain and suffering) in a civil court.
There are important differences between civil and criminal cases
In a civil case the plaintiff must usually prove their case on the balance of probabilities and the defendant may be compelled to testify. In a criminal case the prosecutor has to prove its case beyond a reasonable doubt, a higher standard of proof, and the defendant cannot be compelled to testify.
Ratio decidendi or Ratio
The legal proposition which explains or is essential to the decision in a case. Only the ratio, if there is one, is binding on a later, lower court in the same hierarchy of courts.
Obiter Dictum
Propositions of law, or opinions on the law made by a judge in a case which are not essential to the decision and which by themselves are not binding. They need not be followed by a later lower court. Nevertheless, they may be carefully considered, and if made by a higher court be very influential and become ratio by being followed and applied in later cases.