What Is Equity Law and How Does It Operate In Australia

Equity law is a branch of the Australian legal system that deals with issues between individuals or entities within Australia which may not otherwise be rectified through common law. This area of law includes aspects of contract and property law, as well as trusts and fiduciaries.  

The main difference between Equity law and common law is that Equity law looks to achieve a fair outcome, even when the facts of the case may not support this. Equity law often overlaps with common law when parties are unable to resolve an issue and turn to the court for a solution. Equity law places an emphasis on balancing the rights of parties involved, rather than simply the letter of the law, ensuring fair outcomes in all circumstances. 

One of the most common examples of Equity law in Australia is the trust. A trust is a legal entity created to manage, control and protect assets fro the owner, and depending on the type of trust, can provide security and protection against potential creditors. Equity law also deals with areas such as pleadings, relief from forfeiture and equitable remedies including specific performance, contribution, subrogation and indemnity.  

Equity law also covers the rights of parties in contract disputes. If a party breaches a contract, such as failing to pay an agreed amount, then the other party may be able to claim equitable relief. Equity law may also be invoked in situations where a contract was created under duress or without the full agreement of parties involved.  

Equity law requires that a court must consider the equities of either side before granting a remedy, allowing for just and fair outcomes even in extreme circumstances. 

What it Means

Equity law is an important part of the legal system in Australia, providing individuals and entities with relief from contractual disputes or other issues that can’t be resolved through common law. It is important for those wishing to invoke their rights under equity law to seek the advice of an experienced lawyer as the court must consider the equities of both sides before granting any relief.