INTRODUCTION:

The related maxim is concerned with priorities of competing interests, that is to say which of various interests prevails in the events of a conflict, may be dealt with together. To understand this maxim, a distinction and understanding of the concept of “legal interest or estate” and

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“equitable interest” is necessary.

LEGAL INTEREST:

A legal interest or estate is an interest in the property required by a purchaser for valuable consideration either by cash or marriage consideration. It also includes mortgagee and lessee.

EQUITABLE INTEREST:

An equitable interest is any interest which recognized from the Chancery court. An example

would be in the case of trust; although the trustee’s name would be registered as the holder of the property, the beneficiaries acquire an equitable interest over the trustee’s property. They have a right to sue the trustee for breach of trust.

GENERAL RULE:

Under general rule, the interest takes effect in order of their creation. FOR INSTANCE, whose rights are created first will receive priority in the court of equity. However, an equitable interest might be defeated by a legal interest, even though it has been created prior to the legal interest. For example, if the purchaser of a legal interest is bona fide and without notice of any equitable interest, then the equities are equal and legal interest prevails.

EXPLANATION:

Where equities are equal , the first in time shall prevail – In the absence of a legal estate in the matter and the contest is among the equitable estate only, the rule is that the person whose equity attached to the property first will be entitled to priority over other or others e.g., if A enters into a contract for the sale of his house with B and then with C, the interest of B and C both being equitable, B will have priority over C because his attached to the property first.

APPLICATION:

1:This maxim operates where there are two or more competing interests,provided both the interests are equitable.

2: When two parties each have a right to possess something, then the one who acquired an interest first should prevail in equity.

ILLUSTRATION:

For example, a man advertises a small boat for sale in the classified section of the newspaper.

The first person to see the ad offers him $20 less than the asking price, but the man accepts it. That person says he or she will pick up the boat and pay for it on Saturday. Meanwhile another person comes by, offers the man more money, and the man takes it. Who owns the boat?

Contract law and equity agree that the first buyer gets the boat, and the second buyer gets his or her money back.

CONCLUSION:

This maxim is meant for the two comparative equitable estates with time.Time will have preference. If one person gets his equitable interest before the notice of the other,he will definitely have priority because his equity in former point of time that becomes his privilege,