Law vs. Equity — What's the Difference?
By Tayyaba Rehman & Fiza Rafique — Updated on March 20, 2024
Law refers to rules codified in statutes and legal precedents, focusing on justice through uniformity, while equity deals with fairness, allowing courts to apply discretion and moral judgment.
Difference Between Law and Equity
Table of Contents
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Key Differences
Law is a system of rules created and enforced through social or governmental institutions to regulate behavior, relying heavily on statutes, regulations, and case law to resolve disputes. These rules are designed to ensure predictability and uniformity, as seen in criminal and contract law. On the other hand, equity is a branch of jurisprudence allowing courts to apply principles of fairness and justice in cases where the application of strict legal rules would result in an unjust outcome. Equity operates on maxims, such as "equity will not suffer a wrong to be without a remedy," guiding decisions like injunctions and specific performance.
The origins of law can be traced back to ancient civilizations where it was developed to maintain social order and protect property rights, evolving over time with society. Equity, however, emerged in England during the Middle Ages as a response to the rigidity and inadequacies of the common law, providing remedies that were not available in the law courts. This historical context highlights the complementary nature of law and equity in the legal system.
In practice, law courts typically award monetary damages as a remedy for wrongs. For instance, if someone breaches a contract, the injured party can recover the amount lost due to the breach. In contrast, equity courts can order actions beyond financial compensation, such as compelling someone to fulfill a contract (specific performance) or to cease harmful activities (injunctions). This demonstrates equity's focus on achieving a fair result rather than adhering strictly to legal doctrines.
Law emphasizes procedure and adherence to precedent, meaning decisions are based on previously established legal principles and the application of these principles to the facts of a case. Conversely, equity allows for more discretion and flexibility, with equity courts considering the specifics of each case and the principles of fairness to arrive at a just conclusion, often without being strictly bound by precedent.
While law and equity now often function within the same court system in many jurisdictions, their principles and remedies remain distinct. Law provides the structure and predictability necessary for a functioning society, whereas equity ensures that this structure can be applied in a manner that achieves fairness and justice.
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Comparison Chart
Basis
Statutes, regulations, and case law
Principles of fairness and moral judgment
Origin
Ancient civilizations for social order
Middle Ages in England for correcting law's rigidity
Remedies
Primarily monetary damages
Injunctions, specific performance, etc.
Focus
Uniformity and predictability
Fairness and justice
Decision-making
Based on precedent and strict rules
Discretionary, based on fairness
Historical Function
Maintain social order and protect rights
Provide remedies not available in law courts
Types of Cases
Criminal, contract, tort, etc.
Cases requiring fairness beyond legal remedies
Nature of Remedies
Compensatory
Remedial or preventive
Application in Court
Strict adherence to procedural rules
Flexibility and discretion
Compare with Definitions
Law
Provides a basis for resolving disputes.
The court applied the law to settle the dispute.
Equity
Allows for discretionary decisions.
The judge used equity to reach a fair decision.
Law
A system of rules enforceable by social or governmental institutions.
Driving over the speed limit is against the law.
Equity
Jurisprudence focusing on fairness and moral judgment.
Equity courts can issue injunctions to prevent harm.
Law
Aims for justice through uniformity.
The law treats all individuals equally under the same circumstances.
Equity
Operates on principles of fairness.
Equity considers the intent behind actions for justice.
Law
Governs behavior through statutes and legal precedent.
The law requires businesses to pay taxes.
Equity
Emerged to supplement the law.
Equity was developed to address the rigidity of common law.
Law
Enforced by the state.
Law enforcement agencies ensure compliance with the law.
Equity
Provides remedies where law is inadequate.
Equity intervened where the law provided no remedy for the breach.
Law
Law is a system of rules created and enforced through social or governmental institutions to regulate behavior, with its precise definition a matter of longstanding debate. It has been variously described as a science and the art of justice.
Equity
The state or quality of being just and fair.
Law
A rule of conduct or procedure established by custom, agreement, or authority.
Equity
Something that is just and fair.
Law
The body of rules and principles governing the affairs of a community and enforced by a political authority; a legal system
International law.
Equity
Justice achieved not simply according to the strict letter of the law but in accordance with principles of substantial justice and the unique facts of the case.
Law
The condition of social order and justice created by adherence to such a system
A breakdown of law and civilized behavior.
Equity
See court of equity.
Law
A set of rules or principles dealing with a specific area of a legal system
Tax law.
Criminal law.
Equity
An equitable right or claim
An analysis of the equities and inequities brought about by the current trade bill.
Law
A statute, ordinance, or other rule enacted by a legislature.
Equity
Ownership interest in a corporation, property, or other holding, usually calculated as the value of the holding after subtracting any debt or liabilities.
Law
A judicially established legal requirement; a precedent.
Equity
Equities Shares of common stock or preferred stock.
Law
The system of judicial administration giving effect to the laws of a community
All citizens are equal before the law.
Equity
The value of a brand's reputation.
Law
Legal action or proceedings; litigation
Submit a dispute to law.
Equity
Representing an ownership interest
An equity stake.
Law
An impromptu or extralegal system of justice substituted for established judicial procedure
Frontier law.
Equity
Of or relating to stocks
An equity mutual fund.
Law
An agency or agent responsible for enforcing the law. Often used with the
"The law ... stormed out of the woods as the vessel was being relieved of her cargo" (Sid Moody).
Equity
Subordinated to all other claims on income, earnings, or assets
The equity tranche.
Law
(Informal) A police officer. Often used with the.
Equity
Fairness, impartiality, or justice as determined in light of "natural law" or "natural right".
Law
The science and study of law; jurisprudence.
Equity
(legal) Various related senses originating with the Court of Chancery in late Medieval England
Law
Knowledge of law.
Equity
(legal) The power of a court of law having extra-statutory discretion, to decide legal matters and to provide legal relief apart from, though not in violation of, the prevailing legal code; in some cases, a court "sitting in equity" may provide relief to a complainant should the code be found either inapplicable or insufficient to do so.
Law
The profession of an attorney.
Equity
(legal) A right which accrues to a party in a transaction because of the nature of the transaction itself, and which is exercisable upon a change of circumstances or conditions; in other words, an equitable claim.
Law
Something, such as an order or a dictum, having absolute or unquestioned authority
The commander's word was law.
Equity
The body of law which was developed in the English Court of Chancery, which Court had extra-statutory discretion, and is now administered alongside the common law of Britain.
Law
A body of principles or precepts held to express the divine will, especially as revealed in the Bible.
Equity
(finance) Various senses related to net value
Law
The first five books of the Hebrew Scriptures.
Equity
Value of property minus liens or other encumbrances.
Home equity
I have a lot of equity in my house.
Law
A code of principles based on morality, conscience, or nature.
Equity
(business) Ownership, especially in terms of net monetary value of some business.
Law
A rule or custom generally established in a particular domain
The unwritten laws of good sportsmanship.
Equity
(accounting) Ownership interest in a company as determined by subtracting liabilities from assets.
Law
A way of life
The law of the jungle.
Equity
(poker) A player's expected share of the pot.
Law
A statement describing a relationship observed to be invariable between or among phenomena for all cases in which the specified conditions are met
The law of gravity.
Equity
(nonstandard) Equality
Law
A generalization based on consistent experience or results
The law of supply and demand.
Equity
Equality of rights; natural justice or right; the giving, or desiring to give, to each man his due, according to reason, and the law of God to man; fairness in determination of conflicting claims; impartiality.
Christianity secures both the private interests of men and the public peace, enforcing all justice and equity.
Law
(Mathematics) A general principle or rule that is assumed or that has been proven to hold between expressions.
Equity
An equitable claim; an equity of redemption; as, an equity to a settlement, or wife's equity, etc.
I consider the wife's equity to be too well settled to be shaken.
Law
A principle of organization, procedure, or technique
The laws of grammar.
The laws of visual perspective.
Equity
A system of jurisprudence, supplemental to law, properly so called, and complemental of it.
Equity had been gradually shaping itself into a refined science which no human faculties could master without long and intense application.
Law
(usually with "the") The body of binding rules and regulations, customs, and standards established in a community by its legislative and judicial authorities.
The courts interpret the law but should not make it.
In theory, entrapment is against the law.
Equity
The difference between the market value of a property and the claims held against it
Law
The body of such rules that pertain to a particular topic.
Property law
Commercial hunting and fishing law
Equity
The ownership interest of shareholders in a corporation
Law
Common law, as contrasted with equity.
Equity
Conformity with rules or standards;
The judge recognized the fairness of my claim
Law
A binding regulation or custom established in a community in this way.
There is a law against importing wallabies.
A new law forbids driving on that road.
The court ruled that the executive order was not law and nullified it.
Law
(more generally) A rule, such as:
Law
Any rule that must or should be obeyed, concerning behaviours and their consequences. mores.}}
"Do unto others as you wish them to do unto you" is a good law to follow.
The law of self-preservation
Law
A rule or principle regarding the construction of language or art.
The laws of playwriting and poetry
Law
A statement (in physics, etc) of an (observed, established) order or sequence or relationship of phenomena which is invariable under certain conditions. theory.}}
The laws of thermodynamics
Newton's third law of motion states that to every action there is always an equal and opposite reaction.
This is one of several laws derived from his general theory expounded in the Philosophiæ Naturalis Principia Mathematica.
Law
A statement (of relation) that is true under specified conditions; a mathematical or logical rule.
Mathematical laws can be proved purely through mathematics, without scientific experimentation.
Law
Any statement of the relation of acts and conditions to their consequences.
The law of scarcity
The law of supply and demand
Law
(linguistics) A sound law; a regular change in the pronunciation of a language.
Grimm's law
Dahl's law
Law
(cricket) One of the official rules of cricket as codified by the its (former) governing body, the MCC.
Law
The control and order brought about by the observance of such rules.
They worked to maintain law and order.
It was a territory without law, marked by violence.
Law
(informal) A person or group that act(s) with authority to uphold such rules and order (for example, one or more police officers).
Here comes the law — run!
Then the law arrived on the scene
Law
The profession that deals with such rules (as lawyers, judges, police officers, etc).
He is studying for a career in law.
She has practiced law in New York for twenty years.
Law
Jurisprudence, the field of knowledge which encompasses these rules.
She went to university to study law.
Law
Litigation; legal action (as a means of maintaining or restoring order, redressing wrongs, etc).
They were quick to go to law.
Law
An allowance of distance or time (a head start) given to a weaker (human or animal) competitor in a race, to make the race more fair.
Law
(aviation) A mode of operation of the flight controls of a fly-by-wire aircraft.
Normal law; alternate law; direct law
Law
(fantasy) One of two metaphysical forces ruling the world in some fantasy settings, also called order, and opposed to chaos.
Law
An oath sworn before a court, especially disclaiming a debt. wager of law", "wage one's law", "perform one's law", "lose one's law".}}
Law
(obsolete) A tumulus of stones.
Law
A hill.
Law
A score; share of expense; legal charge.
Law
(obsolete) To work as a lawyer; to practice law.
Law
To prosecute or sue (someone), to litigate.
Law
(nonstandard) To rule over (with a certain effect) by law; to govern.
Law
(informal) To enforce the law.
Law
To subject to legal restrictions.
Law
(dated) An exclamation of mild surprise; lawks.
Law
In general, a rule of being or of conduct, established by an authority able to enforce its will; a controlling regulation; the mode or order according to which an agent or a power acts.
These are the statutes and judgments and laws, which the Lord made.
The law of thy God, and the law of the King.
As if they would confine the Interminable . . . Who made our laws to bind us, not himself.
His mind his kingdom, and his will his law.
Law
In morals: The will of God as the rule for the disposition and conduct of all responsible beings toward him and toward each other; a rule of living, conformable to righteousness; the rule of action as obligatory on the conscience or moral nature.
Law
The Jewish or Mosaic code, and that part of Scripture where it is written, in distinction from the gospel; hence, also, the Old Testament.
What things soever the law saith, it saith to them who are under the law . . . But now the righteousness of God without the law is manifested, being witnessed by the law and the prophets.
Law
An organic rule, as a constitution or charter, establishing and defining the conditions of the existence of a state or other organized community.
Law
In philosophy and physics: A rule of being, operation, or change, so certain and constant that it is conceived of as imposed by the will of God or by some controlling authority; as, the law of gravitation; the laws of motion; the law heredity; the laws of thought; the laws of cause and effect; law of self-preservation.
Law
In mathematics: The rule according to which anything, as the change of value of a variable, or the value of the terms of a series, proceeds; mode or order of sequence.
Law
In arts, works, games, etc.: The rules of construction, or of procedure, conforming to the conditions of success; a principle, maxim; or usage; as, the laws of poetry, of architecture, of courtesy, or of whist.
Law
Collectively, the whole body of rules relating to one subject, or emanating from one source; - including usually the writings pertaining to them, and judicial proceedings under them; as, divine law; English law; Roman law; the law of real property; insurance law.
Law
Legal science; jurisprudence; the principles of equity; applied justice.
Reason is the life of the law; nay, the common law itself is nothing else but reason.
Law is beneficence acting by rule.
And sovereign Law, that state's collected willO'er thrones and globes elate,Sits empress, crowning good, repressing ill.
Law
Trial by the laws of the land; judicial remedy; litigation; as, to go law.
When every case in law is right.
He found law dear and left it cheap.
Law
An oath, as in the presence of a court.
Law
An exclamation of mild surprise.
Law
Legal document setting forth rules governing a particular kind of activity;
There is a law against kidnapping
Law
The collection of rules imposed by authority;
Civilization presupposes respect for the law
The great problem for jurisprudence to allow freedom while enforcing order
Law
A generalization that describes recurring facts or events in nature;
The laws of thermodynamics
Law
A rule or body of rules of conduct inherent in human nature and essential to or binding upon human society
Law
The learned profession that is mastered by graduate study in a law school and that is responsible for the judicial system;
He studied law at Yale
Law
The force of policemen and officers;
The law came looking for him
Law
The branch of philosophy concerned with the law and the principles that lead courts to make the decisions they do
Common Curiosities
How do law and equity work together today?
In many jurisdictions, law and equity principles are applied in the same courts to ensure justice is both fair and predictable.
What distinguishes law from equity?
Law focuses on codified rules and uniformity, while equity centers on fairness and discretion.
Why was equity developed?
Equity was developed in response to the rigidities and inadequacies of common law, to ensure fairness.
What are examples of equitable remedies?
Injunctions and specific performance are key examples of equitable remedies.
Can equity override the law?
Equity can provide remedies where strict application of the law would result in injustice, but it doesn't "override" law; rather, it complements it.
Is equity considered more flexible than law?
Yes, equity is more flexible, allowing judges to apply discretion based on fairness.
Do all countries have a separate system for law and equity?
Not all countries have separate systems; many have merged law and equity into a unified court system.
What challenges exist in balancing law and equity?
Balancing the predictability of law with the flexibility of equity can be challenging, especially in complex cases.
What role does precedent play in equity?
While equity courts consider precedent, they have more discretion to depart from it in the interest of fairness.
Can legal courts issue equitable remedies?
In jurisdictions where law and equity are merged, legal courts can indeed issue equitable remedies.
How does one access equitable remedies?
Parties typically request equitable remedies in their pleadings, and the court decides whether such remedies are warranted.
How does the public view law vs. equity?
The public often sees law as more rigid and equity as more about fairness and justice, though both aim to achieve justice.
What historical figures are associated with the development of equity?
Figures like Lord Chancellor in England played a significant role in the development and administration of equity.
Are equitable principles universal?
While the concept of fairness is universal, the application of equitable principles can vary between jurisdictions.
How do judges decide when to apply equity?
Judges consider the specific circumstances of each case, the principles of fairness, and the inadequacies of legal remedies.
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Written by
Tayyaba RehmanTayyaba Rehman is a distinguished writer, currently serving as a primary contributor to askdifference.com. As a researcher in semantics and etymology, Tayyaba's passion for the complexity of languages and their distinctions has found a perfect home on the platform. Tayyaba delves into the intricacies of language, distinguishing between commonly confused words and phrases, thereby providing clarity for readers worldwide.
Co-written by
Fiza RafiqueFiza Rafique is a skilled content writer at AskDifference.com, where she meticulously refines and enhances written pieces. Drawing from her vast editorial expertise, Fiza ensures clarity, accuracy, and precision in every article. Passionate about language, she continually seeks to elevate the quality of content for readers worldwide.
