Equity and the Trust Instrument Quiz

A body of legal principles that originated in the English Court of Chancery. It arose to address injustices created by rigid common law rules.

A legal relationship where a person (trustee) holds property for the benefit of another person (beneficiary).

Equity focuses on the conscious of the owner of the legal interest. It prevents unconscionable conduct by ensuring fairness in legal dealings.

Equity developed to address limitations in common law, which could lead to unjust outcomes. This gave aggrieved parties a way to seek relief from the King or the Lord Chancellor.

The Lord Chancellor, acting as the King's conscience, oversaw the Court of Chancery. This court applied equitable principles to resolve disputes.

The Earl of Oxford's Case (1615) highlights the role of equity in correcting injustices. The case demonstrated how equity can soften the harshness of common law rules.

Equity can be applied when dealing with contracts. For example, remedies like injunctions or specific performance can ensure fairness in contractual disputes.

Equity and common law, despite being distinct, both aim for justice and work together to achieve fair outcomes.

A legal system based on precedents and judge-made decisions. It focuses on following existing laws strictly and impartially, emphasizing predictability and consistency.

A legal principle prohibiting the use of a legal right to commit fraud or injustice. Basically, you can't use the legal system to exploit others unfairly.

A legal principle stating that equity prevails over common law when they conflict. This means that if a situation involves both common law and equity, the principles of equity will take precedence in deciding the case.

The process where the Lord Chancellor acted as the 'conscience of the King,' deciding cases based on fairness and justice. This system, while aiming for fairness, introduced subjectivity and unpredictable results.

The fusion of common law and equity courts into a single High Court system in England. This aimed to streamline legal procedures and eliminate the need for separate court systems.

The situation where common law and equity principles coexist within a unified court system but remain distinct in their application. Although administered by the same courts, they function as separate bodies of law.

The situation where common law and equity principles are fully integrated and harmonized into a single system of law. This integration goes beyond the court structure and affects the actual legal rules and principles themselves.

A legal arrangement where one person (the trustee) holds property for the benefit of another person (the beneficiary).

The trustee has legal title to the property, meaning they have the legal power to manage and control it. The beneficiary has beneficial interest, meaning they are entitled to benefit from the property.

A type of trust created intentionally by the settlor (the person creating the trust) to benefit specific individuals.

A trust where the beneficiaries' shares are predetermined, like giving "...to my children in equal shares."

A trust where the trustee has discretion to decide how much each beneficiary receives, like "...for the trustees to hold and distribute at their discretion...in such proportions..."

A trust created during the settlor's lifetime, either by declaring themselves as trustee or transferring property to a named trustee.

A trust created in the settlor's will and comes into effect after their death.

Trusts provide flexibility in managing assets for specific purposes, such as managing assets for minors or incapacitated individuals, tax planning, controlling future disposition of assets, and preventing frivolous spending.

The concept that courts of equity will not create a remedy for someone who has not suffered any legal wrong.

A situation where one party acts in a way that is so unfair or oppressive that it shocks the conscience of the court. It's a flexible principle, applied based on the specific circumstances of each case.

A legal relationship where one party (the fiduciary) has a duty to act in the best interests of another party (the beneficiary). This requires a high standard of conduct and prohibits personal gain at the beneficiary's expense.

A maxim that emphasizes the need for parties seeking equitable relief to have acted fairly and ethically in the situation. 'Clean hands' refers to a lack of wrongdoing or deception on the part of the person seeking help from the court of equity.

A legal doctrine that allows courts to treat an agreement as if it had already happened, even though the formal legal steps haven't been completed. This is often used to prevent injustice or unfair consequences.

Equity is focused on the intention behind actions, not just the formalities or procedures involved. If someone's intent is clear, even if the legal process wasn't perfect, Equity can still provide a remedy.

Courts of equity dislike gaps or loopholes in the law. They aim to provide solutions even when traditional legal remedies are lacking.