7.6 Equity S02Y24.pptx

Principles of Business Law Semester 2 2024 TOPIC 7: REMEDIES FOR BREACH EQUITY Equity  The common law became rigid and preoccupied with form.  Subjects petitioned the King claiming injustice at the hands of the common law.  Originally the King resolved matters pe...

Principles of Business Law Semester 2 2024 TOPIC 7: REMEDIES FOR BREACH EQUITY Equity  The common law became rigid and preoccupied with form.  Subjects petitioned the King claiming injustice at the hands of the common law.  Originally the King resolved matters personally.  Then, power was delegated to the Chancellor to resolve such complaints. Case example: Taylor v Johnson FPBCL p 425-6 Common law: was there a binding contract?  Agreement?  Consideration?  Intention?  Certainty? The application of the common law principles led to the conclusion that Johnson and Taylor had entered into a contract and thus Johnson was bound to sell the ten acres for $15,000. Johnson’s mistake was not relevant to this analysis. Equitable remedies: Example Mateo and Dina entered into a contract under which:  Mateo promised to transfer his property interest in a one-of-a- kind antique vase to Dina.  Dina promised to pay Mateo $1,000 for doing so. What happens if Mateo breaches his promise?  Common law – damages, termination.  Equity – specific performance. The merger of administration  Administration of common law and equity in England was merged by the Judicature Act passed in 1873.  The reforms were aimed at avoiding:  the inconvenience of two separate court systems;  the confusion stemming from incomplete division between the two courts.  However, it was the administration of these laws, not their principles of law that were merged.  In Victoria, when the Supreme Court was established in 1852 it was given both common law and equitable jurisdiction.