12 Maxims of Equity
Maxims of Equity Equity in law refers to a set of principles that aim to achieve fairness and justice when the strict application of legal rules might result in an unfair outcome. The principles of equity are often summarized in maxims, which serve as guidelines for courts in deciding cases based on fairness.
In this article we will discuss 12 most important maxims of equity.
- He who seeks equity must do equity
Meaning
If you want the court to help you, you must be fair and just in your own actions.
- Example
This maxim is incorporated under Order 8, Rule 6 of the CPC, as the doctrine of set-off. Suppose A goes to court and claims 1000 rupees due from B. B claims in a same suit 300 rupees due to him from A. If A wants courts to do equity (grant him his 1000 rupees) he should also do equity (should also return to B his 300 rupees)
- Example
Imagine a tenant who has not paid rent for several months. If this tenant goes to court asking for protection against eviction, the court will expect the tenant to be willing to pay the overdue rent. The tenant must act fairly by paying what is due if they want the court’s help.
- Equity will not suffer a wrong to be without a remedy
Meaning
If someone has been wronged, the court will find a way to provide a remedy, even if the existing laws do not offer a clear solution. It is based on Latin maxim “Ubi jus ibi remedium” which means “where there is a right, there is a remedy.”
Principle
This principle means that if a legal right has been violated, the law must provide a way to enforce that right or offer compensation.
Example
Imagine someone takes your land by cheating you out of it. The strict law might not have a specific solution to give your land back if the papers are all legal. However, based on this maxim, the court will ensure that some remedy (such as getting the land back or compensation) to be given to you as a remedy.
Leading Case on where there is a right there is a remedy
Ashby v. White 1703 is a landmark English case.
Facts
Plaintiff: Mr. Ashby, a qualified voter.
Defendant: Mr. White, a constable. Incident: Mr. Ashby was wrongfully prevented from voting by Mr. White. The candidate whom Ashby wanted to vote won the election in spite of that.
Reasoning Plaintiff’s Argument: Ashby argued that even the candidate whom he wanted to vote has won the election but still his right to vote, was violated. He sought damages for this infringement.
Defendant’s Argument: White contended that since Ashby’s preferred candidate won, no actual damage was suffered, and thus no compensation was warranted. Conclusion Court’s Decision: The court, led by Chief Justice Holt, ruled in favor of Ashby. It was held that the right to vote is a common law right, and any obstruction of this right should give rise to a cause of action, regardless of whether tangible damage occurred.
Legal Principle: The decision in Ashby v. White set a principle that there is a legal remedy available for any infringement.
- Equity regards as done what ought to be done
Meaning
The court treats things that should have been done as if they were actually done. Example Suppose a person agrees to sell a piece of land to another person and receives the payment. However, the formal transfer of the land (registration) hasn’t been completed yet. If a dispute arises, the court will treat the land as already transferred to the buyer because the seller has received the payment and should have completed the transfer.
Application of this maxim in India
Section 40 of TPA Illustration
A contracts to sell Sultanpur to B. While the contract is still in force he sells Sultanpur to C, who has notice of the contract. B may enforce the contract against C to the same extent as against A. Principle If a person has promised or is obligated to do something, they should be treated as if they have fulfilled that promise, even if they haven’t done it yet.
- Equity is equality
Meaning
The maxim “equity is equality” ensures that the court tries to treat everyone equally and fairly, especially in cases involving division of assets or benefits.
Example
A, B and C bind themselves as sureties for a debt of Rs. 3,000/- advanced by X to Y. On Y’s failure to pay off the debt, X has a right to recover the whole amount from any of the three and if A has been compelled to pay the whole and cannot obtain indemnity from Y he (A) is entitled to a contribution of one-third from B and the other one-third from C and has to bear only the remaining one-third for himself. Principle Here the contribution is not the result of contract but is based upon the principle of natural justice. The statutory applications of this doctrine under the
Indian Law are :- (i) Section 43 of the Indian Contract Act, 1872, which entitles a co-promisor who has performed the promise to compel other joint-promisors to contribute equally;
(ii) Section 146 of the Indian Contract Act, 1872 provides for contribution among co-sureties ;
(iii) Section 27 of the Indian Trust Act, 1882 which provides for contribution among co-trustees in case of a breach of trust; whether breach of trusts was committed jointly or where one of the trustees by his neglect enables the other to commit a breach of trust.
(iv) Section 82 of the Transfer of Property Act, 1882 provides for contribution to the mortgage debt by the co-mortgagors.
Example 1 (Contract for Sale of Property):
Situation: You entered into a contract to buy a piece of land from a seller. You paid the full amount, but the seller hasn’t transferred the land to you.
Court’s Action: The court can apply this maxim, treating the land as already yours and forcing the seller to complete the transfer. Even though the legal transfer hasn’t formally happened yet, the court treats it as done because it should have been done already.
- Equity follows the law
Meaning
The principles of equity are applied in a way that complements and supports the existing laws, rather than contradicting them. In simpler terms, equity ensures fairness and justice, but it does so within the framework of the established legal rules. However, If a legal rule is too rigid or does not cover a specific situation, equity can step in to provide a fair solution without overriding the law.
Example
Equity will enforce the terms of a contract as written, provided the contract is lawful and entered into freely by both parties. For example, if a contract for the sale of land is legally binding, equity will not alter the terms of the sale unless there is evidence of misrepresentation or mistake. But if a contract is found to be the result of unconscionable bargain, it is voidable at the option of the aggrieved party under section 16 Indian Contract Act. Thus equity does not interfere with the it only follows it unless there is compelling reason to deviate.
- He Who Comes to Equity Must Come with Clean Hands
Meaning
If you want the court to help you with an equitable remedy (like an injunction or specific performance), you must have acted fairly and honestly in the matter. In other words, you cannot seek help from the court if you have done something wrong or unethical related to the issue at hand.
Example
Suppose A sells B a house of 500 yards for 5 lakh rupees. B gives 3 lakh rupees of the money and takes possession. After the completion of sale B found that the house is only 400 yards. B gives 1 more lakh to A. A goes to court to set aside the sale. Court will refuse to set it aside because A did not act honestly and fairly.
- Delay defeats equity/ Equity aids the vigilant, not those who sleep on their rights
Meaning If you have a right or a claim, you need to act on it promptly. If you wait too long or ignore it, you might lose the chance to get help from the court. Example If someone owes you money and you wait many years to claim it, the court might refuse to help you because you didn’t act promptly. Application in India In India it applies under Indian Limitation Act, 1963
- Where the equities are equal, the law prevails
Meaning
If two people have equally strong claims to something, the court will use the existing legal rules to make a decision.
Example
Imagine two people, A and B, both claim ownership of the same piece of land. Both have equally valid reasons for their claims. In this situation, the court will look at the legal documents and rules to determine who has the stronger legal right. If A has a registered sale deed and B only has an unregistered agreement, the court will favor A because the law gives more weight to registered documents. Two creditors lent money to the same person. Both have equal rights to get their money back. However, only one creditor’s loan was properly registered under the law. The court will favor the creditor who followed the legal process and registered the loan, even if both creditors had equal rights to repayment.
- Where the equities are equal, the first in time prevails
Meaning If two people have equally strong claims to something, the person who made their claim first will win.
Example
Thus, if A mortgaged his property to B, then to C and then to D and the interest of all the three be merely equitable, then B’s interest having been created first in point of time, he will have priority over C and D and likewise, C will have priority over D’s claim.
Similarly, if A enters into a contract, for the sale of his house, with B and then with C, the interests of B and C both being equitable, B will have priority over C because his equity attached to the property first.
Application in India
The impact of this maxim can be seen in the provision made under Sections 40 and 78 of the Transfer of Property Act. Section 40 deals with the prior equitable and subsequent legal interest while Section 78 deals with prior legal and subsequent equitable interest.
- Equity looks to the intent rather than the form
Meaning Court focuses on the true intention behind actions rather than just the technical details or legal form. Example A and B buy land from C to become an equal owner of the land. In the document it was not given how much money A and B will give to C. But it was their intention that they will own the land as a co-owner and will pay equally. Then even if the document does not mention the amount, the court will see the intent of the parties. A father gives his son a large amount of money to start a business, but they didn’t create a formal loan document. If the son later claims it was a gift, the court can look at the father’s true intent (if he meant it as a loan) and not just the lack of formal paperwork. The court can treat the transaction as a loan, even without the formal document, if the intent was to treat it as such.
- Equity imputes an intention to fulfil an obligation
Meaning
If someone is supposed to do something according to an agreement or duty, equity (fairness) assumes that they intend to fulfil that obligation, even if they haven’t done it exactly as required.
Principle
The court applies this maxim to protect the person who was supposed to benefit from the obligation. It prevents situations where one party suffers because the other party didn’t fully complete their responsibility, despite having clear intentions to do so. Example A person promises to transfer a house to their sibling but forgets to sign one final document. The court can assume the intention was there and treat it as if the obligation was fulfilled. It encourages people to act in good faith by showing that their intentions will be honoured, even if they make a minor mistake or fail to complete all formalities.
- Equity Acts in Personam
Meaning
This maxim means that equity (fairness) focuses on the person and their actions, not just on property or rights. The court can direct a person to do (or not do) something to ensure fairness, no matter where the property or issue is located.
Example
A person in India owns property in another country and sells it unfairly, violating a contract. An Indian court can order the person to honour the contract and undo the unfair sale, even though the property is located outside India. The court’s power is over the person (who is in India), not the foreign land.
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