What is the Difference Between Common Law and Equity?
🆚 Go to Comparative Table 🆚The main difference between common law and equity lies in their historical origins, principles, and remedies. Common law is based on judicial precedent, while equity originated in medieval England as a response to the limitations and rigidity of the common law system. Here are some key differences between the two:
Common Law:
- Developed in England and spread to many English-speaking countries.
- Based on judicial precedent, which provides consistent rulings.
- Offers legal remedies like damages.
- Originated in the legal courts, presided over by judges.
Equity:
- Developed from the King's Court of Chancery, which handled cases that common law courts couldn't adequately address.
- Rooted in fairness and seeks to address situations where the application of common law is insufficient.
- Provides equitable remedies, such as specific performance or injunctions.
- Originated in the Courts of Chancery, presided over by the chancellor to the presiding monarch.
In practice, common law and equity often intersect and influence each other. In many jurisdictions, courts apply both legal systems to ensure a more complete and just resolution of disputes. While separate courts of chancery have largely been abolished, the distinction between law and equity still retains its vitality, as the successful handling of certain law cases can be difficult or impossible unless a court has jurisdiction over both legal and equitable claims.
Comparative Table: Common Law vs Equity
Common law and equity are two distinct branches of law that have roots in English legal traditions. They were established in separate courts and serve different purposes. Here is a table highlighting the differences between common law and equity:
| Feature | Common Law | Equity |
|---|---|---|
| Definition | A body of law based on precedent or court decisions. | A system of laws set up by a court's discretion to provide justice when common law cannot. |
| Origin | Established in the legal courts, presided over by judges. | Came from the Courts of Chancery, presided over by the chancellor to the presiding monarch. |
| Focus | Laws based on precedent and rulings of judges who hear a case in a courtroom. | Laws that deal with judgment and justice, often stemming from a sense of "natural law". |
| Application | Applies rules of common law to the issue before the court. | Provides legal relief in the event that such relief cannot be found in the rules of common law. |
| Maxims | - Equity will not suffer a wrong to be without a remedy. | - He who comes to equity must come with clean hands. |
Some examples of differences between common law and equity include:
- In a common law contract dispute, a court might award damages (monetary compensation) to the wronged party, while in an equitable dispute, a court might order specific performance of the contract.
- In a common law tort dispute, a court might award compensatory damages (money to make the injured party whole), while in an equitable dispute, a court might issue an injunction to the wrongdoer requiring them to take certain actions.
- In a common law property dispute, a court might determine ownership based on legal precedent, while in an equitable dispute, a court might order a remedy based on fairness and justice.
- Civil vs Common Law
- Liability vs Equity
- Equity vs Capital
- Legal vs Equitable Interest
- Equity vs Equality
- Legal vs Equitable Remedies
- Equity vs Shares
- Equity vs Assets
- Equity vs Security
- Debt vs Equity
- Law vs Justice
- Equity vs Royalty
- Derivatives vs Equity
- Commodity vs Equity
- Equity vs Debt Financing
- Equity vs Debt Securities
- Cost of Capital vs Cost of Equity
- Civil Law vs Criminal Law
- Equity Shares vs Preference Shares