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Return to The Principles of Equity & Trusts 4e Resources
Chapter 1 Scenario Questions
An introduction to Equity
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A law lecturer teaching Equity is asked about the two fundamental features of Equity as a body of law.
Which of the following would be included in their answer? There may be more than one correct answer.
Equity exists to modify the harshness of the Common Law.
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Equity is founded on conscience and morality.
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Equity is a free-standing body of law which is separate from the Common Law.
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Equity no longer has any fundamental features which are distinct from the Common Law.
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A legal historian is attempting to explain the nature of Common Law and Equity before the Judicature Acts of 1873 and 1875.
Which of the following might they include in their explanation? There may be more than one correct answer.
The two bodies of law had distinct roles and it was straightforward to navigate the system.
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The system was complicated, but it generally achieved justice and fairness.
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The Common Law was highly formalistic and inflexible, whereas Equity was roguish and unpredictable.
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Common Law and Equity often came into conflict and it was never clear which should prevail or how the conflict should be resolved.
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A student asks their Equity lecturer about the effect of the Judicature Acts of 1873 and 1875.
What would the lecturer include in their answer? There may be more than one correct answer.
The effect of the statutes was to create one single High Court and to abolish the Common Law and Chancery courts.
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The effect of the statutes was to substantively fuse Common Law and Equity.
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The effect of the statutes was to administratively fuse Common Law and Equity.
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Whilst the effect of the statutes is said to administratively fuse Common Law and Equity, they also have a significant effect in substantively fusing the two.
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A critic of Equity suggests that it has made no contribution to modern English law.
How might someone with knowledge of Equity respond? There may be more than one correct answer.
Equity's only contribution to modern English law is the trust, but it is a significant contribution.
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Equity's practical contribution is admittedly limited, but the spirit of discretion and conscience have an ongoing effect.
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Equity has contributed significantly to rights, duties, powers and remedies.
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Equity has contributed significantly to all areas of English law.
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Ben is a beneficiary under a trust. The trustee has misappropriated trust property and Ben has the choice of electing between a personal right and a proprietary right.
Which of the following are reasons why Ben might favour a proprietary right over a personal right? There may be more than one correct answer.
If the defendant is insolvent, Ben will also have a proprietary right over the property belonging to the defendant's family, business partners, and any associated companies.
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If the defendant is insolvent, Ben will have priority over other creditors of the defendant.
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If the property increases in value, Ben will get the benefit of the increase.
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If the property is lost or damaged, the defendant will be obliged to replace it for Ben.
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A student asks their Equity lecturer how equitable proprietary rights are created.
Which of the following responses would the Equity lecturer give? There may be more than one correct answer.
Equitable proprietary rights can be created expressly.
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Equitable proprietary rights can be created by presumed intent.
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Equitable proprietary rights may arise by operation of the law.
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Equitable proprietary rights arise automatically.
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