Equity and Trusts Study 1

Introduction to Equity

• Equity is associated with fairness and flexibility in law to achieve just outcomes.

• Historically separate from common law, equity was created to address rigidities of common law.

• Post-Norman Conquest (1066), common law evolved under royal judges but became rigid.

• Equity developed in response to common law's inflexibility and hardships.

Nature of Equity

• Equity is discretionary, aimed at rectifying mistakes and preventing exploitation.

• The chancellorship transitioned to common lawyers, introducing more structure.

Evolution of Equity

• Conflict between equity and common law led to judicial reforms, establishing equitable remedies.

• Significant Acts: Common Law Procedure Amendment Act (1852) and Chancery Amendment Act (1858).

• Judicature Acts (1873 & 1875) fused systems into the Supreme Court of Judicature.

Maxims of Equity

• Key principles include:
    1. Equity will not suffer a wrong without a remedy.
    2. Equity follows the law.
    3. He who seeks equity must do equity.
    4. Equity looks to intent rather than form.
    5. Delay defeats equity.

The Trust

• Trust defined as rights held for another’s benefit.

• Varieties include express (intentional) and implied trusts (by law).

Purpose of Trusts

1. Segregation of assets for protection.

2. Asset partitioning between beneficiaries.

3. Asset management by trustees.

4. Tax avoidance strategies.