What is Equity

The common law system sometimes had gaps and could be very rigid, leading to unfair outcomes. Equity was developed to fix this problem. It provided new, fairer solutions and legal remedies that the old common law rules did not offer. Equity is a legal system for obtaining a fair result when existing laws do not provide a solution. Equity is the set of legal principles that supplement strict rules of law where their application would operate harshly.

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However, equity was never meant to replace the law. Its role is to follow the law and supplement it, working alongside it to ensure justice, not to overthrow it. Because of this, if an existing law is already clear, specific, and fair in a situation, equity will not interfere. In these cases, its special principles are not needed and have no role to play.

But when a law is unclear, vague, or would create a harsh and unjust result if applied strictly, that is when equity becomes important. Its principles step in to soften the harshness of the law and ensure a fair result. In these situations, the principles of equity are extremely useful.

DEFINITION OF EQUITY

The literal meaning of equity is “right as founded on the laws of nature, fairness, justice.

Equity as defined by some of the jurists may be quoted as under: –

• Aristotle, “Equity is the correction of the law where it is defective on account of its generality”.
• Blackstone, “Equity, in its true and genuine meaning, is the soul and spirit of all law; positive law is construed and natural law is made by it. In this way, equity is synonymous with justice, in that, it is the true and sound interpretation of the rule”.
•  Sir Henry Maine, “Equity means anybody of rules existing by the side of the original civil law, founded on distinct principles and claiming incidentally to supersede the civil law by virtue of a superior sanctity inherent in those principles”.
• Snell, “Equity is a natural justice, uprightness, fairness and honesty

Equity, also known as equity law or the law of equity, emerged in medieval England as a complementary force to common law. Distinguished by its emphasis on fairness, justice, and conscience, equity offers remedies and solutions that common law might not. It aims to rectify situations where strict adherence to legal rules could lead to unfair outcomes

History of Equity under English law

Early Petitions to the King:

In medieval England, individuals who felt they had been wronged but could not find redress in the common law courts petitioned the king for justice. The king, seen as the ultimate source of justice, would initially decide these petitions himself. As the volume of petitions grew, the king began delegating these matters to the Lord Chancellor, a high-ranking official who was often a cleric. The Lord Chancellor’s decisions were based on principles of fairness, moral conscience, and the king’s directives, rather than rigid common law precedents.

Development of Equitable Principles and Doctrines

Maxims of Equity:

Equity developed a set of guiding principles known as maxims, which help ensure its fair application. Some key maxims include: o “Equity will not suffer a wrong to be without a remedy.”

• “Equity follows the law.”
• “He who seeks equity must do equity.”
• “He who comes into equity must come with clean hands.”
• “Delay defeats equity.”
• “Equity acts in personam” (against the person).

Equitable Doctrines:

Several doctrines emerged to address situations inadequately covered by common law:

• Trusts: Equity developed the concept of trusts, where one party (the trustee) holds property for the benefit of another (the beneficiary). This doctrine became crucial for managing estates and charitable donations.
• Injunctions: Courts of equity could issue injunctions to prevent or require specific actions, addressing situations where monetary damages were insufficient.
• Specific Performance: This remedy compels a party to fulfill their contractual obligations, used when damages would not be an adequate remedy. o Estoppel: This prevents a party from arguing something contrary to a position they previously took if others relied on that initial position to their detriment.
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Basic Distinctions between Common Law and Equity

Common Law   

1. Decision is made by reference to precedents: Stare decisis (to stand by decision)
2. The only one remedy is damages/compensation.
3. Operates in rem;
4. Establishes general rules which provide certainty

Equity

1. The emphasis is laid on fairness and flexibility: Maxims of equity.
2. Remedies as order to do or not to do something:

• Specific Performance
• Injunction
• Rescission
• Rectification

3. Operates in
4. Acts as a check and balance of common law.