Equity and Trust: History and Nature

Questions and Answers

What is the essence of Equity?

Creating a perfect system that applies equally to all without overlooking individual needs.

Which historical figure described equity as 'the integrity of the law'?

Prof Dworkin

Which document adopted the principles and rules of equity in PNG law?

Judicature Acts

PNG Constitution (correct)

Statute of Westminster

Earl of Oxford case

The Court of Chancery combined with the Court of Common Law in 1873.

True Signup and view all the answers

What was the purpose of the Court of Chancery?

To administer a system of justice called equity. Signup and view all the answers

The concept of 'conscience' in equity relates to acceptable versus ______ conduct.

unacceptable Signup and view all the answers

What does the term 'cestui que use' refer to?

Beneficiary Signup and view all the answers

What did the Statutes of Uses 1535 provide for lords?

Safeguard against losing land and options for passing it to heirs. Signup and view all the answers

Match the following concepts with their definitions:

Trustee = The person who holds property for the benefit of another. Beneficiary = The person for whose benefit the trust is created. Equitable tracing = The process of identifying property that can be claimed. Injunction = A court order to cease an action. Signup and view all the answers

Study Notes

History and Nature of Equity

Aristotle emphasized achieving "the best possible result" in ethics.
Hegel highlighted the contrast between "literal interpretation and what is right" in his Philosophy of Rights.
Prof. Dworkin introduced the notion of "law's integrity" in his work Law’s Empire.

Early History of Equity

Equity originated from the concept of "conscience," addressing fairness beyond strict legal rules.
Courts of Chancery were established, presided over by the Lord Chancellor, to apply principles of equity in justice.
The Earl of Oxford case (1615) affirmed that equity seeks to correct conscience for frauds, breaches of trust, and wrongs.

Essence of Equity

Aims to create a fair legal system that serves everyone equally while recognizing individual needs.

Application of Equity in Papua New Guinea (PNG)

The PNG Constitution's Schedule 2.2 adopted English equity principles as of Independence Day, 16 Sept 1975.
The case Mt Kare Holdings v Akipe reflects amendments that align with "the Melanesian way."

Historical Developments

Provisions of Oxford (1258) and the Statute of Westminster 11 (1285) expanded access to equity.
Individuals could appeal directly to the King for justice through the Lord Chancellor when common law was inadequate.

Separation of Courts

Two separate courts existed: the Court of Common Law (dealing with criminal and civil law) and the Court of Chancery (focusing on conscience).

Judicature Acts 1873 & 1875

Merged the physical operations of Common Law and Equity while maintaining intellectual separation.
Introduced a broader range of remedies including trusts, injunctions, and rescissions.

Fusion of Common Law and Equity

Although merged, they remain two distinct intellectual frameworks; equity prevails in conflicts with common law, highlighting their separate yet parallel nature.

Concept of Conscience in Equity

Equity judges a defendant's moral conduct against objective standards of good conscience, clarifying acceptable versus unacceptable behavior.

Flexibility vs. Certainty

Equity allows for adaptability in societal changes while upholding certain formal rules, with implications for trusts and property management.

Fundamental Principles of Equity

Common Law remedies include damages for breach of contract, while Equity addresses breaches of trust and includes remedies like injunctions and rectification.

History of Trusts

Trusts trace back to the Knights Templar in the 11th century, allowing nobles to delegate land use during their absence.
The Statutes of Uses 1535 were meant to protect lords' interests against the king's authority.

Cestui Que Use and Trust

"Cestui que use" refers to the beneficiary of a trust, while "cestui que trust" is the trustee, delineating interests in property law.

Tyrell’s Case (1557)

This case solidified property laws and refined legal terminology regarding trusts and estates.

Contemporary Examples of Trusts

Today’s trusts serve various purposes: managing property for those with disabilities, inheritance, family care, pension provisions, and tax management.

Inspirational Quote

Nelson Mandela stated, "It is in your hands, to make a better world for all who live in it," reflecting the intrinsic value of equity in social justice.

Upcoming Focus

Future sessions will explore Chapters 3 & 4 on Equity and the Constitution, continuing the discussion on legal principles and their applications.

Description

Explore the foundational concepts of equity, tracing the views of philosophers like Aristotle and Hegel. Understand the evolution of equity law and its application through the Courts of Chancery and the role of the Lord Chancellor. This quiz will deepen your knowledge of the historical context and theoretical underpinnings of equity.