Legal Dictionary
Equity
Definition
The quality of being fair and impartial; specific branch of law distinct from common law.
Deep Dive
Equity, in its general sense, signifies fairness, impartiality, and justice, especially in the application of laws. Legally, it refers to a distinct body of law that developed in England to provide remedies when the rigid rules of common law were insufficient or would lead to an unfair outcome. While common law primarily offers monetary damages, equity provides more flexible, conscience-based remedies, such as ordering someone to perform a specific action or to refrain from doing something.
Examples & Use Cases
- 1A court issuing an injunction, an equitable remedy, to prevent a former employee from revealing trade secrets to a competitor.
- 2In a contract dispute over a unique piece of art, a judge ordering specific performance, an equitable remedy, to compel the seller to complete the sale rather than just paying damages.
- 3A business seeking rescission of a contract due to fraudulent misrepresentation, an equitable remedy that voids the agreement entirely.
Related Terms
Common LawInjunctionSpecific Performance