THE SUBJECT IS BUSINESS LAW

Business Law

Business Law

Reasons behind the creation of equity

The regulation of equity encompasses a body of rules, principles and doctrines primarily evolved by the Court of Chancery, broadly directed to address the confrontations recognised with uniform directions of justice that were inflexible and often rough on particular individuals in specific positions and measures of fairness and conscience. It is discretionary and not founded on precedent so this jurisdiction has continually altered and evolved by judicial decision of the substantive principles of regulation and since its conception.

Relief against Forfeiture

Relief against forfeiture, in general periods is the equitable jurisdiction to 'prevent one man from forfeiting what in equitable dealing belongs to somebody additional, by taking advantage of a breach from which he is not commensurately and irreparably damaged..." . Historically, this jurisdiction was restricted to respite against the terms of penal bonds but now concerns routinely to proprietary interests and has been extended to possessory interests. Circumstances in which relief against forfeiture of an interest in house may originate is in the context of agreements for the sale or lease of land. Relief of forfeiture of individual concerns to which one party is deserving may arise where a right of residence exists under a permit agreement.

Underlying Principles

The maxims of equity are important central principles that underlay all equitable remedies, but it is the unconscionable perform of a person that has developed to work out equities jurisdiction to ease against forfeiture.

Acontract/agreement may supply that on termination, the promisee may keep or forfeit cash paid under the agreement or the goods or interest in land of the promisor. Equity has an very old jurisdiction to ease against forfeiture on such surrounds as deception, misfortune or mistake. The usual equitable remedies are used here. For example, in alignment for repayment of money the remedy would be an injunction or exact performance.

"The general underlying idea is that which has long been recognised as underlying much of equity's customary jurisdiction to grant respite against forfeiture is unconscientious conduct, namely, that a person should not be permitted to use or assert upon his lawful privileges to take benefit of another's special vulnerability or misadvantage for the unjust enrichment of himself."

Forfeiture and contracts for the lease of land

By exercising a right to forfeit, a lessor terminates the lease. Alessor's right to terminate the lease by forfeiture generally arises where there is:

breach of a condition;

arepudiation by the lessee which is acknowledged by the lessor ; or

abreak of a covenant in esteem of which the lease comprises a proviso for re-entry.

Relief against forfeiture for non-payment of rent

Equity has long workout jurisdiction to allocate respite against forfeiture of an interest in land. Where the forfeiture is founded on non-payment of lease, the court will gladly grant respite, as long as a lessor can be put in the same place as before the forfeiture and the lessee is arranged to make good the default by fee of the unpaid lease, charges and, where appropriate, interest and other expenses of the ...