Equity and Trusts

Equity in the Late 17th and 18th Centuries

• Initial flexibility of equity was characterized by a lack of formal rules and procedures, allowing for a more adaptable and discretionary approach to justice.
• This flexibility enabled the Court of Chancery to develop and apply equitable principles to address the limitations of the common law.

The Role of the Court of Chancery

• The Court of Chancery played a crucial role in the growth of equity, as it provided a forum for litigants to seek relief from the strict rules of the common law.
• The Court's ability to grant equitable remedies, such as injunctions and specific performance, helped to establish equity as a distinct body of law.

Origins of Equity and the Trust Concept

• The origins of equity and the trust concept were aimed at overcoming the limitations and injustices of the common law, particularly in relation to property ownership and succession.
• Equity developed as a means of providing a more flexible and just approach to disputes, particularly in cases where the common law was inadequate or unfair.

Conflicts between Equity and the Common Law

• Conflicts between equity and the common law were addressed through the development of a system of concurrent jurisdiction, where both courts had the power to hear cases.
• This led to a gradual assimilation of equitable principles into the common law, resulting in a more harmonious and comprehensive system of law.

Nature of a Beneficial Interest

• A beneficial interest in the context of equity and trusts refers to the right to enjoy the benefits of a property or asset, without necessarily having legal ownership or title.
• A beneficial interest is often held by a beneficiary of a trust, who is entitled to receive distributions or benefits from the trust property.