Deck 1: What Is Equity?

Question 1

Which of the following statements most accurately defines the role of equity and trusts in the modern day?

A) Equity is a body of law and rules which has made many historical contributions to the law, but is no longer vital or important.
B) The trust is the only contemporary doctrine of equity of any relevance; the rest of equitable rules and principles are of historical interest only.
C) Equity is a vital and important system of law that recognises rights and benefits that the common law did not, and which operates alongside the common law in the modern legal system - the trust is the prime example of such rights.
D) Equity is nothing more than a sub-set of rules of common law which deal with fairness and the trust is example of these rules in practice.

Answer 1

C

Question 2

What is meant by 'equity' in English law?

A) Justice and fairness.
B) A doctrine that decisions of the courts should be conducted in a way that is fair and right.
C) A body of law which developed through the Courts of Chancery.
D) The enforcement of moral obligations in English law.

Answer 2

C

Question 3

Identify which of the following is not a device or remedy that equity recognises.

A) To grant unmarried couples entitlements to the family home on the death of the partner or relationship breakdown.
B) To make parties perform their obligations under a contract, rather than simply pay for breach of contract.
C) To allow a person to secretly provide for an illegitimate child in their will.
D) To allow the enforcement of moral obligations in law, such as enforcing the relationship of 'trust'

Answer 3

D

Question 4

Which of the following is false in relation to the operation of equity and the trust?

A) Equity allows for the creation of informal rights in property, including ownership and rights less than ownership.
B) Equity allows parties to enforce promises as legally binding obligations.
C) Equity, in certain circumstances, allows someone who has entered into a contract to enforce performance of the contractual obligations by the other party, rather than collect damages for breach of contract.
D) Equity provides the basis for the operation of the law of charities.

Question 5

Which of the following explains the historical reasons for the creation of equity?

A) There was no system of common law available throughout the country.
B) It took too long to petition the monarch for his justice.
C) The rules of equity arose to remedy defects in the common law.
D) Equity was a faster alternative the common law courts.

Question 6

Which of the following statements is not true in relation to equity?

A) Equity began as a court of conscience, and evolved into a court of legal rules.
B) Equity could enforce certain obligations (e.g. oral contracts) when the common law would not.
C) Equity acts in personam, so that a defendant could be imprisoned for failing to obey an order from the Chancellor.
D) Equity was administered by the monarch and his Lord Chancellor.

Question 7

Which of the following describes the relationship between equitable and common law rules?

A) Common law rules are superior, as equity only acts in personam.
B) When there is a conflict between common law and equitable principles, common law prevails.
C) When there is a conflict between common law and equitable principles, equity prevails.
D) Equity and common law are now both part of the same system, so that no real differences exist.

Question 8

How much money was estimated to be held by the court of chancery for decisions awaiting trial at the time of Lord Eldon's investigation into procedural delay in 1812?

A) £400,000
B) £39 million.
C) £16 million.
D) £16 million.

Question 9

Which of the following statements best describes the 'fusion' of equity and common law today?

A) There is no longer any distinction between legal and equitable rights.
B) Fusion has produced a single, coherent body of rules which operate harmoniously together, though they retain some of their historical character.
C) 'Fusion' is purely administrative, so that equity and common law are now administered in the same courts but retain their separate character.
D) Equitable rights and rules are now subject to the common law, reversing the primacy of Equity.

Question 10

Which of the following statements best describes the creativity of equity today?

A) Equity may invent new rights and remedies when it is fair to do so.
B) Equity can evolve new rights and remedies from existing rules and concepts.
C) Equality is equity. Equity may not create new rights and remedies, as law making is for the legislature, not the judiciary.
D) Equity is no longer relevant as a creative force, as it has been subsumed into the common law

Question 11

What are the maxims of equity?

A) Summaries of legal rules, which are applied in cases as binding authority.
B) A complete guide to the operation of equity.
C) Summaries of the key principles of the equitable jurisdiction.
D) A list of the moral principles underpinning equitable decisions.

Question 12

Which of the following equitable maxims featured in Tinsley v Milligan [1994] 1 AC 340 (House of Lords)?

A) He who seeks equity must do equity.
B) He who comes to equity must come with clean hands.
C) Equality is equity.
D) Equity regards as done what ought to be done.