Chapter 1 Self-Test Questions

How did Equity develop as a body of law?

It has existed for longer than the Common Law, with the Common Law filling in the gaps where Equity did not provide the answers.

It originated from the possibility of petitioning the King or Lord Chancellor when there was no remedy provided by the Common Law courts or where the Common Law was harsh.

It originated from judges misinterpreting Common Law principles to find fairer results.

It emerged when parties found the Common Law rules to be too harsh and so took the law into their own hands.

Which of the following are considered characteristics of Equity?
Select two answers.

Harshness.

Rigour.

Flexibility.

Fairness.

'Over the years, Equity has become increasingly flexible and less rule-based.'

True.

False.

Why was Lord Briggs concerned about the 'uncontrolled intervention of equity' in the Supreme Court decision in Vauxhall Motors Ltd v Manchester Ship Canal Co Ltd?

To ensure that the admirable certainty of English law is not undermined.

To ensure that the remedy of relief from forfeiture applies only in very limited circumstances.

Lord Briggs used this argument to justify his refusal to expand the ambit of the equitable remedy to include the forfeiture of possessory rights over land.

Lord Briggs was not concerned about the 'controlled intervention of equity'; he was willing to introduce greater uncertainty given the nature of Equity.

In the event of a conflict between Common Law and Equity, which should prevail?

The Common Law.

Equity.

It is not possible for there to be a conflict between the two.

It depends on the circumstances.

'Equity was seen to qualify and soften the harshness of the law.'

True.

False.

'The dual court structure, resulting from distinct Common Law and Chancery courts, was mildly impractical but not problematic.'

True.

False.

What was the effect of the Judicature Acts of 1873 and 1875?
Select two answers.

To replace the Common Law and Chancery courts with a single High Court.

To abolish Equity due to its interference with the rules of the Common Law.

To allow remedies from the Common Law and Equity to be awarded in the same court.

To absolutely fuse the Common Law and Equity.

How do Equity and the Common Law interact?

Common Law and Equity are often competing and in conflict.

Equity's flexibility reduces the harshness and rigidity of the Common Law.

Equity is applicable when all Common Law options have been exhausted.

Equity generally says the opposite of the Common Law.

'Equity cannot be said to have had a major influence on English law.'

True.

False.

What is the crucial defining feature of the trust?

A person hides property because they do not trust others.

It allows people to hold money without paying tax.

Property is held by someone for the benefit of someone else.

Property is held by someone for their own benefit.

'The Common Law recognizes the trustee as obliged to hold the property for the benefit of the beneficiary.'

True.

False.

Why is there a growing concern about the application of Equity in commercial transactions?
Select two answers.

Equitable principles conflict with many Common Law principles relating to commercial transactions.

Equity was never intended to apply in contexts other than land law and contract. Its application to commercial transactions was unintended.

There is a risk that certainty is being undermined.

Equity may be seen to have overreached itself in its impact on commercial transactions.

'Property rights are generally preferable to personal rights.'

True.

False.

Which of the following is a bare trust?

A holds £1,000 for B and C equally, who are both over the age of 18.

A holds £1,000 for B and C, but has a discretion as to who will get what and when.

A holds £1,000 for B for her life with remainder to C.

A holds £1,000 for B and C equally but they are under the age of 18.

Which of the following is a fixed express trust?

A holds £1,000 for B and C equally, who are both over the age of 18.

A holds £1,000 for B and C, but has a discretion as to who will get what and when.

A holds £1,000 for B for her life with remainder to C.

A holds £1,000 for B and C equally but they are under the age of 18.

Ivan owns a car. He is the only owner and owns it outright. What property rights does Ivan have in the car?
Select two answers.

Legal proprietary right.

Equitable proprietary right.

Mere equity.

Beneficial interest.

A has her car stolen. How does her remedy vary depending on whether she owns the car at Law or in Equity (i.e. whether she holds the legal title to the car absolutely or if it is held on trust for her by someone else)?
Select two answers.

If A owns the car at law, she is entitled to recover the car.

If A owns the car at law, she is entitled only to compensation.

If A has an equitable interest in the car, she is entitled to recover the car.

If A has an equitable interest in the car, she is entitled only to compensation.

'Whilst not official, Equity and the Common Law are, for all intents and purposes, substantively fused.'

True.

False.

Which of the following are examples of Common Law and Equity being assimilated?
Select two answers.

Remedies are becoming increasingly aligned.

The principle of unconscionability triggers a response at both Common Law and in Equity.

Compound interest is now available for claims regardless of whether they arise at Common Law or in Equity.

The duties of care owed are the same at Common Law and Equity.

'The dual system in England and Wales of the Common Law and Equity is the only dualist legal system that has existed.'

True.

False.

Which of the following best describes Equity in relation to the Common Law?

Equity is a separate, independent, and complete body of law.

Equity is a separate and independent body of law, but it is not complete.

Equity is an appendix, intended to modify the harshness of the Common Law.

Equity has been assimilated entirely into the Common Law.

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