Definition Of Equity In Law

Equity can be used to measure the value of an entire business a single stock issued by a business the inventory owned by the business or any other thing that has value.

Definition of equity in law. Equity follows the law. The word equity has the following meanings. Courts will firstly apply common law and if this is not fair then an equitable remedy will be provided. Let it just be mentioned that under napoleonic law the civil judge judging en droit et en équité must say the law even if there is no appropriate or conclusive written law applying to the case.

It could refer to fairness impartiality or evenhanded dealing. In law the term equity refers to a particular set of remedies and associated procedures involved with civil law. Law can be traced to england where it began as a response to the rigid procedures of england s law courts. Maxims were originally quoted in latin and many of the latin phrases continue to be familiar to lawyers in the early 2000s.

These equitable doctrines and procedures are distinguished from legal ones. As a legal system it is a body of law that addresses concerns that fall outside the jurisdiction of common law. For example as per the company policies managers should use equity in dealing with subordinate employees. Updated july 20 2020 in the world of business and finance equity refers to the value of ownership in something.

The use of the word equity in other law systems is outside the topic of by this article. A legal definition from the oxford dictionary describes equity as a branch of law that developed alongside common law and is concerned with fairness and justice formerly administered in special courts. While legal remedies typically involve monetary damages equitable relief typically refers to injunctions specific performance or vacatur. A rule of equity the system of justice that complements the common law.

In jurisdictions following the english common law system equity is the body of law which was developed in the english court of chancery and which is now administered concurrently with the common law. Equity can be broadly described as being just or fair whereas the legal meaning of the term equity refers to the rules determined to mitigate the severity of the common law rules and those issues that are not be covered under the common law jurisdiction. Equity is also used to describe the money value of property in excess of claims liens or mortgages on the property. Equity can be defined as of equité fair even.

The separate body of law developed in the court of chancery which supplements corrects and controls the rules of common law.