Basic Concepts of Equity

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What is the main focus of principles of equity?

Achieving justice not available at common law (correct)

Being resistant to change over time

Ignoring the conscience of property owners

Providing inconsistent guidelines for judges

What is the underlying intention of the principles of equity?

To promote unfair decisions

To favor the legal owner of property

To enforce rigid rules regardless of circumstances

To achieve justice beyond common law (correct)

Which term best describes the nature of equity principles?

Immutable and unchanging

Biased and discriminatory

Flexible and adaptable (correct)

Rigid and inflexible

What do the maxims of equity serve as?

Statements embodying core equity principles Signup and view all the answers

What does the maxim 'Delay defeats equity' imply?

Unreasonable delays can hinder the application of equity Signup and view all the answers

What does the maxim 'Equity will not assist a volunteer' signify?

'Volunteer' refers to someone trying to take advantage without justification Signup and view all the answers

What is the primary focus of equity in the context of agreements?

The spirit and desired outcome of the agreement Signup and view all the answers

In the context of a trust, who has the legal ownership and manages the property for the benefit of another?

Trustee Signup and view all the answers

What type of interest does a beneficiary hold in a trust?

Equitable interest Signup and view all the answers

Which of the following is NOT considered a type of property?

Intellectual property Signup and view all the answers

Who is responsible for enforcing the trust obligations to ensure the beneficiary receives the benefits?

Beneficiary Signup and view all the answers

Which role is responsible for creating a trust that becomes effective upon their death?

Testator Signup and view all the answers

What type of trust involves a trustee holding assets for the benefit of members of a club or association?

Private clubs and associations Signup and view all the answers

What is the main purpose of placing assets in a trust for the purpose of collective investment schemes?

To avoid creditors taking the assets Signup and view all the answers

Which of the following is not a category of people on whom fiduciary duties are imposed?

Shareholders Signup and view all the answers

What is the basis for the legal owner's conscience requiring him to carry out the purposes for which the property was vested in him in the case of a trust?

Express trust Signup and view all the answers

What is the main purpose of a pension trust?

To ensure secure pensions Signup and view all the answers

What is the basis for the legal owner's conscience requiring him to carry out the purposes for which the property was vested in him in the case of a constructive trust?

Unconscionable conduct Signup and view all the answers

What is the significance of a beneficiary's interest in a trust?

It can be enforced against the trustee and successors in title. Signup and view all the answers

What type of third party will not be bound by a trust?

A bona fide purchaser for value who has no notice of the beneficiaries’ rights. Signup and view all the answers

What are the requirements for a purchaser to be considered 'equity’s darling'?

They must act in good faith, give full valuable consideration, and have no knowledge of the existence of the trust. Signup and view all the answers

What are the two ways for a settlor to create an express trust?

By declaring themselves as the trustee and by transferring property to trustees on trust. Signup and view all the answers

What happens when the owner of an asset declares that they hold the asset for the benefit of someone else?

They create an express trust. Signup and view all the answers

What happens when a settlor transfers property to trustees on trust?

They transfer legal title to the asset to trustees. Signup and view all the answers

What is the nature of the court order in a specific performance remedy?

The court compels the defendant to comply with the terms of a contract. Signup and view all the answers

Which of the following is not a type of injunction?

Damages injunction Signup and view all the answers

What must the claimant seeking rectification evidence?

The parties’ actual intention and that the executed document does not accurately reflect that. Signup and view all the answers

Which remedy does not require a valid and enforceable contract?

Rectification Signup and view all the answers

Which of the following is not a requirement for a court to order specific performance?

The court usually orders specific performances for working for someone. Signup and view all the answers

Which of the following is a true statement about equitable remedies?

Equitable remedies are granted at the discretion of the court. Signup and view all the answers