Equity Follows the Law

Introduction:

Equity has no clash with law neither it overrides the provisions of law. Nor it is the enemy of law. It adopts and follows the basic rules of law. It is said that equity is not a body of jurisprudence acting contrary to law but is rather a supplement to law. It is a well known rule that equity follos the analogies of law. The equity came not to destroy the law but to fulfit it, to supplement it, to explain it. Equity respect every word of law.

Meaning

Equity is intended to supplement the law and not to supersede it.

Case law

Cowper vs. Cowper 1734, 2P WNS 720

The discretion of the court is to be governed by the rules of law and equity which are not oppose but each in tur to be subservient to other, this discretion in some cases follows the law implicity, in other assists it and advances the remedy; in other against it relieves against the abuse or allays the rigour of it but in no case does it contradict or overturn the grounds of principle thereof.

Application

It has application in the following two aspects.

1. As to legal estates, rights and interest:

As regards legal estates, right and interests, equity was and is strictly bound by the rules of law and it has no discretion to deviate there from. Equity does not allow an unfair use to be made of legal rights so equity follows in regard to the rule of primogeniture.

Case Law

Strickland vs. Aldrige 1804

It was held exclusion of the younger member of a family from property according to the rule of primogeniture does not create any particular circumstances entitling to a relief at equiry, because the eldest son gets only what he is entitled to get in law.

2. As to Equitable rights and interest:

In many cases, equity acts by analogy to the rules of law in relation to equitable titles and estates. Equitable estates are guided by the rules of decent as legal estate.

Important aspects of maxim:

Following are the two important aspects of this maxim.

Equity adopts and following the rules of law in all cases where applicable.

Equity follows the analogy of law

Exceptions:

Following are exceptions

i. Where a rule of law did not specifically apply.

ii. Where even by analogy the rule of law did not apply, equity formulated and applied it, own rules.

Ending Remarks:

To conclude it can be said that equity always follows the law in the sense of obeying it and conforming to its general rules and policy, whether contained in common law or statue law. The rules of equity can not override the specific provisions of law.

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We All Wear Masks

The keynote speaker at one seminar I attended made this statement – “We all wear masks”. As I pondered on what possible meanings that statement might have, I realised that this is a general summation of humanity. Regardless of whom we are and at different times in our lives, we all wear masks.

What, then, is a mask? Generally speaking, a mask is a covering for the face. It is a covering for part, or all, of the face, worn to conceal a person’s identity. It is a grotesque or humorous face worn at carnivals, masquerades, etc. Anything that disguises or conceals (e.g. pretense), is a mask. A person might be hurting badly, and conceal it with a great big smile – Masks! Psychologists say that if a person tells you several times during a conversation “I’m not lying”, he usually is lying. Masks!Lots of people have different masks for different days, and perhaps different occasions. Masks are those things that allow us to assume that we are different from other people.

I read an article in Psychology Today titled “The Truth About Lying” written by Peter Doskoch. In it, Peter quoted a study of psychologist and lying expert Bella DePaulo, Ph.D, who had carried out research and concluded that “occasionally a person will insist that he or she can be entirely truthful for three or four weeks. But no one ever succeeds.” “Everyday lies are really part of the fabric of social life,” says DePaulo, a university professor. He thinks its “because people want to be accepted, and because, sometimes telling things as they actually are, can be damaging to people’s hearts and relationships, so people stretch the truth a little, some more often that others.” The problem arises though, when the liar starts believing that he is telling the truth. He becomes seriously deluded, while people around him, except him, can see that he is being untruthful, and perhaps, crafty. Usually, it wont be very long before the majority of people discover the masks. While some lies damage relationships and destroy trust, other fibs fulfil important interpersonal functions, like smoothing over awkward situations or protecting fragile egos.

But how often do people lie, and when do they do it? DePaulo and colleagues asked 77 college students and 70 community members to keep a diary detailing each lie THEY told. The students, it turned out, admitted to lying, an average of twice a day, while local residents lied half as often. Among the study’s other findings:

* Community members lied in one-fifth of their social interactions; students, one-third. * Lying was more common in phone calls than in face-to-face chats. * One lie in seven was discovered–as far as the liars could tell. * A tenth of the lies were merely exaggerations, while 60 percent were outright deceptions. Most of the rest were subtle lies, often of omission. * More than 70 percent of liars would tell their lies again.

No one has ever succeeded in telling the absolute …

Problems of Budget Deficits

A budget deficit occurs when Government spending is greater than tax revenues. For political reasons a budget deficit often occurs. Politicians never gain votes by raising taxes and cutting spending. With many major World economies facing a large budget deficit. It is worth considering the main economic disadvantages of Government borrowing.

Increased Borrowing

The govt will have to borrow from the private sector, in the UK the government does this by asking the Bank of England to sell bonds and gilts to the private sector.

Higher debt interest payments

Selling bonds will increase the national debt, this is currently £300 billion. The annual interest payments is approximately £23 billion, this has a high opportunity cost because it requires future generations to pay higher taxes.

Increased AD

A budget deficit implies lower taxes and increased G, this will increase AD and this may cause higher Real GDP and inflation.

Higher Taxes and lower spending

In the future the govt may have to increase taxes or cut spending in order to reduce the deficit. This may cause reduced incentives to work

Increased Interest rates

If the govt sells more bonds this is likely to cause interest rates to increase. This is because they will need to increase interest rates in order to attract investors to buy the extra debt.

If govt interest rates increase this will push up other interest rates as well.

Crowding Out

Increased govt borrowing may cause a decrease in the size of the private sector (see fiscal policy)

Inflation

In extreme circumstances the govt may increase the money supply to pay the debt, however this is unlikely to occur in the UK

If the govt sells short term gilts to the banking sector then there wil be an increase in the money supply, this is because banks see gilts as near money therefore they can maintain there lending to customers. However they will also be increasing the money supply by lending to the govt.

note the effect of a budget deficit depends to some extent on the cause. For example in a recession a budget deficit may be necessary to get the economy out of recession. If the government is borrowing to invest in infrastructure and education this can benefit the economy in the long term.…