Equity Law and Legal Definition

The word Equity has the following meanings:

  • The body of principles constituting what is fair and right or the natural law
  • It could refer to fairness, impartiality or evenhanded dealing. For example as per the company policies managers should use equity in dealing with subordinate employees.
  • The principles of justice used to correct or supplement the law as applied to particular circumstances. For example the judge decided the case by equity because the statute did not fully address the issue. In this sense it is also termed natural equity
  • The system of law or body of principles which originated in the English court of Chancery, which superseded the common law and statute law when there was a conflict between the two.
  • A right, interest or remedy recognizable by a Court of equity
  • The right to decide matters in equity or equity jurisdiction.
  • An ownership interest in the property especially a business. For example A gave her equity in the business to B.
  • A share in a publicly traded company. For example A did not want to cash in his equity