Rule of equity

Theoretical overview:

Rule of equity is a separate system of law from common law. It has different rules, principles and remedies. Equity proceeds in the principle that a right or liability should as far as possible be equalized among all interested. In other words, two parties have equal right in any property, so it is distributed equally as per the concerned law.

Need for rule of equity :

• Under the common law, only one remedy was available, i.e. damages. Thus, a just and reasonable measure cannot always be given through the common law, where monetary compensation was not appropriate. This remedy did not always yield significant conclusions in cases.
• A civil action under the common law can only be initiated through a writ which was a legal document where it was written as to why and on what legal grounds a person is being prosecuted. The problem arose when a case was not covered by a writ. The making of writs with every new case was stopped in the 13th century and this meant that if a case was not already covered by the writ, it was not carried forward.

Principles of rule of equity:

1. Equity without a remedy will not be wrong: – This maxim, in Latin, is “Ubi Jus Ibi Remedium” which means “where there is a right there is a remedy”. Maxim states that in situations in which the common law acquires a right, it also have remedies for the violation of the right. It should be kept in mind that this principle only applies where the jurisdiction of the court has both rights and measures.
2. Equity follows Law: – This proverb is also expressed as “aequitas sequitur legem“. This maxim abolishes that equity supplement law and does not supersede it. The discretion of the court is governed by law and equity which are subject to each other. Wherever the law can be followed, it should be followed. In cases where the law is not specifically applicable, this maximum limit is limited. But in modern England and Wales, the law follows equity. Section 49 (1) of the Senior Courts Act, 1981 clearly specifies that in case of conflict between the law and the rule of equity, equity will prevail.
3. One who comes in equity should come with clean hands: –This principle relates to the past conduct of the parties and states that a person who comes to court to demand equity should not involve himself in an unequal act in the past. This saying is concerned with the past behavior of the plaintiff.
4. Delay defeats equity: – The Latin maxim for this principle is “Vigilantibus non dormientibus aequitas subvenit” which means that equality supports vigilance and not those who sleep for their rights. Unreasonable delay in bringing forth a claim is called headache. There may be consequences. Thus, a party must claim the action within a reasonable period of time. There are certain situations where the statute of limitations is expressly enforced, in such cases, there is a special legal situation where a time period is clearly set, has expired and the party are barred from bringing the suit of action.
5. Equality is equity: – This principle is expressed by the Latin maxim “Aequitas est quasi aequalitas” which means that equity is equality. There is a saying that equity litigation, as far as possible, seeks to keep the parties at an equal level and equalize their rights and responsibilities. Ordinary law may give advantage to one party over the other, but the court places the parties on the same footing wherever possible.

Remedies under law of equity

1. Injection: – It is a type of remedy in which the court provides a certain law and order on which the parties are pressured or restrained to perform a specific act.
2. Specific performance: – In these types of remedies, the court passes a statement in favor to complete certain functions that are interlinked or already a part of the contract.
3. Recession: – This remedy alternatively takes the parties back to their normal position before entering into a contract.
4. Rectification: – In such a measure the court orders correcting or making some changes to the written document to reflect what is actually said on the first page

Points to remember:

• Rule of equity is a separate system of law from common law. It has different rules, principles and remedies
• This principle relates to the past conduct of the parties and states that a person who comes to court to demand equity should not involve himself in an unequal act in the past.
• equity litigation, as far as possible, seeks to keep the parties at an equal level and equalize their rights and responsibilities.