lesson 8 - equity vs law

Question 1

What iis equity?

Answer 1

Law is the black letter rules that make the legal system have a bright line and a rigid structure, this is necessary in a justice system in order to make it clear and thus predictable.

Equity, on the other hand, assures that the legal system is not only rigid and predictable, but also flexible and just, in the broadest sense of the word.

Question 2

maxims of the equity

Answer 2

Equity will not suffer a wrong to be without a remedy.
B

Equity will not suffer a wrong to be without a remedy.
C

Equity aids the vigilant not the indolent.
D

He who comes into equity must come with clean hands.
E

Equity delights to do justice and not by halves.
F

Equity delights in equality.

Question 3

One common form of equity is “specific performance”, which is what?

Answer 3

When a court orders a party to actually do what they promised in a contract, in cases where damages would not be adequate remedy.

Question 4

One common form of equity is an “injunction”, which is what?

Answer 4

When a court orders someone to do, or stop doing, a specific act.

Question 5

As a lawyer practicing in an international law firm, you have to pay particular attention to equity principles in which situation?

Answer 5

when reviewing contracts

When reading through international contracts, they often reference “remedies at law”, “remedies in equity” or “remedies at law, or in equity”

If a contract states “remedies at law” only, , well, if a contract states this, it implicitly rules out “remedies in equity” such as specific performance and/or injunctive relief.

Similarly, English language contracts often go out of their way to articulate in a section of the contract the special unique nature of the contract, and stating specifically, that equitable remedies are therefore available.

And sometimes, you will see a contract where one party to the contract is allowed to exercise “remedies at law”, and in another section of the same contract, the other party is allowed to “exercise its remedies, at law and in equity”, which is a much larger range of remedies.

So always keep your eyes out when reviewing international contracts originating from common law jurisdictions, for the distinctions made in them between law and equity.