CILEx L3 Equity & Trusts Introduction

Question 1

What is the historical origin of equity in the English legal system?

Accepted Answer

Equity developed from petitions to the Lord Chancellor for relief where the common law was inadequate or too rigid

Answer

Equity was created by the Judicature Acts 1873-75

Answer

Equity was enacted by Parliament as a supplement to common law

Answer

Equity developed from Roman law principles applied by church courts

Question 2

What did the Judicature Acts 1873-75 achieve in relation to equity and common law?

Accepted Answer

They fused the administration of law and equity into a single court system, though the bodies of law remain distinct

Answer

They abolished equity as a separate body of law

Answer

They established that common law always prevails over equity

Answer

They created a separate Supreme Court for equitable matters

Question 3

What is a 'trust' in equity?

Accepted Answer

An arrangement where one person (trustee) holds property for the benefit of another (beneficiary)

Answer

A contract between two parties to manage property

Answer

An agreement to share the use of property without transferring ownership

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A testamentary disposition taking effect on death

Question 4

Who are the parties to a trust?

Accepted Answer

The settlor (who creates the trust), the trustee (who holds and manages the property), and the beneficiary (who benefits)

Answer

The donor, the administrator, and the recipient

Answer

The testator, the executor, and the legatee

Answer

The grantor, the holder, and the creditor

Question 5

What is the 'maxim' that equity follows the law?

Accepted Answer

Equity will generally conform to the rules of common law unless there is good reason to depart from them

Answer

Equity replaces the law in all cases of conflict

Answer

Equity only applies when common law provides no remedy

Answer

Equity must always mirror statute law

Question 6

What is the 'maxim' that equity will not suffer a wrong without a remedy?

Accepted Answer

Where a legal wrong exists and common law provides no adequate remedy, equity will intervene to provide relief

Answer

Equity provides a remedy in every case of injustice

Answer

Any wrong may be brought to a court of equity

Answer

Equity allows all legal claims to be retried