Equity in Contract Law

Equity

• Common law was inflexible and focused heavily on procedural aspects.
• Individuals petitioned the King to address perceived injustices caused by common law.
• Initially, the King personally resolved these grievances, later delegating authority to the Chancellor.

Case Example: Taylor v Johnson

• Examined whether Johnson and Taylor had a binding contract.
• Key elements assessed: agreement, consideration, intention, and certainty.
• The conclusion affirmed the existence of a contract obligating Johnson to sell ten acres for $15,000, dismissing Johnson's mistake as irrelevant.

Equitable Remedies

• Contract between Mateo and Dina:
  • Mateo committed to transferring a unique antique vase to Dina in exchange for $1,000.
• In the event of Mateo breaching the contract:
  • Common law response: monetary damages or contract termination.
  • Equitable response: specific performance, compelling Mateo to fulfill his promise.

Merger of Administration

• The Judicature Act of 1873 unified the administration of common law and equity in England.
• Aimed to eliminate:
  • The inconvenience of managing two separate court systems.
  • Confusion from the partial overlap of the two courts' functions.
• Only the administration of laws was merged, not the fundamental principles.
• In Victoria, the Supreme Court gained both common law and equitable jurisdiction upon its establishment in 1852.

Explore the principles of equity, focusing on its distinction from common law and the significance of equitable remedies. This quiz covers cases like Taylor v Johnson and examples of contract enforcement, highlighting the role of the Chancellor and key elements of binding contracts.