Also known as: equity
Written by attorneys · grounded in primary & secondary sources — see below
A contractual stipulation or legal concept developed and applied under principles of equity as distinguished from rules at common law. Equity terms govern remedies such as specific performance and risk allocation in land contracts once a binding agreement forms. They also limit revocation of offers supported by separate consideration and preserve rights like redemption in mortgage contexts.
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Eric Espinoza signed a binding contract to purchase a warehouse from Edgewater Capital. Before closing a fire destroyed the building. Eric must still pay the full purchase price because equity treats him as owner from the moment the contract formed.
Eugene Ellsworth sued a state agency in federal court claiming violation of a federal statute. The court exercised jurisdiction because Article III extends judicial power to cases in law and equity arising under federal law.
Elliot Edmonds and his spouse held their home as tenants by the entirety. While divorce proceedings were pending Elliot executed a will leaving the home to Emily Ellis. Upon Elliot's death title passed to his spouse by operation of law and equity refused to impose a constructive trust.
After a nonjury trial Esme Ellington moved for a new trial on her claim for equitable relief. The court applied the standard used for rehearings in suits in equity under the federal rules.
Evelyn Ellison and Empire Logistics signed a family law arbitration agreement. When Empire later sought to revoke it the court enforced the agreement because revocation grounds must exist at law or in equity.
Echelon Security entered a transaction with Everest Holdings that was later challenged as unfair to the partnership. The court dismissed the equity claim because the transaction was fair to the partnership.
Once a binding contract for the sale of land is formed equity treats the buyer as owner of the land. In many jurisdictions the risk of loss therefore passes to the buyer at contract formation even if the property is later destroyed before closing.
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Article III extends the judicial power to all cases in law and equity arising under the Constitution, federal laws, and treaties. The reference preserves the historic distinction between legal and equitable remedies in federal courts.
…second section of the third article of the Constitution gives this court appellate jurisdiction in all cases in law and equity arising under the Constitution and laws of the United States (except the cases in which it has original jurisdiction) with such exceptions and under such regulations as Congress shall make.…
…Negro children should forthwith be admitted to schools of their choice, or" "(b) may this Court, in the exercise of its equity
…is the just rule furnished by the principles of commercial law to govern the case." The Court in applying the rule of § 34 to equity cases, in Mason v. United States , 260 U.S. 545, 559, said: "The statute, however, is merely declarative of the rule which would exist in the absence of the statute."[^maj-2] The federal…
…unless the beneficiary is "without fault" and such adjustment or recovery would defeat the purposes of the Act or be "against equity and good conscience." 42 U. S. C. § 404 (b). See generally 20 CFR §§ 404.501-404.515 (1975). [^maj-23]: This, of course, assumes that an employee whose wages are garnished erroneously is…
…the scope of equitable remedial discretion is to be determ
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Absent wrongful conduct or unjust enrichment equity will not impose a constructive trust to circumvent survivorship rights in tenancy by the entirety even when a will attempts to devise the property to a third party.
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After a nonjury trial a court may grant a new trial for any reason for which a rehearing has been granted in a suit in equity in federal court.
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An agreement to arbitrate a family law dispute is irrevocable except on a ground that exists at law or in equity for the revocation of a contract.
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It is a defense to a claim under the partnership statute and any comparable claim in equity or at common law that the transaction was fair to the partnership.
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