Equity Is a Whole Branch of English Law
Equity means fairness, a share in a company, or a distinct system of law that grew up alongside the common law.
Equity means fairness, and in finance an ownership share. English law gave it a third and stranger meaning: a separate body of rules developed by the Court of Chancery to soften the rigidity of the common law. Where the common law offered only damages, equity could order someone to actually do the thing they promised — and the two systems are still distinguished today.
- Fairness. *A question of equity.*
- Ownership in a company. *Private equity.*
- The value of a property above its mortgage. *Equity in the house.*
- A branch of law. *Equity and trusts.*
Word forms
| Form | Word | Example |
|---|---|---|
| Noun | equity | Negative equity. |
| Plural | equities | Global equities. |
| Adjective | equitable | An equitable outcome. |
| Related | equality | Equality of treatment. |
| Related | equal | Equal shares. |
How it is used in a sentence
- They released equity from the house.Property finance.
- Equity acts on the conscience.A traditional description of the legal doctrine.
- Equity and equality differ.See below.
Equity and equality
- Equality — treating everyone the same
- Equity — accounting for different starting points
- Equitable remedies — orders to do or stop doing something
- Injunction — an equitable order to refrain from an act
- Specific performance — an order to carry out a contract
From Old French *equité*, from Latin *aequitas*, fairness, from *aequus*, even or level.
Equity or equality?
Equality means identical treatment. Equity means fair treatment, which may require different provision for different needs.
What is negative equity?
When a property is worth less than the mortgage secured on it, so the owner's share has fallen below zero.