Equity & Equitable Interests in L and
Purposes of equity
They supplement common law rules
o Prevents opportunistic exploitation of common law rules
o Serves as a form of standard instead of strict rules [moral standards]
o Gives more flexibility
o Eg. Trust
Proprietary Estoppel under equity
Crabb v Arun DC
Although under common law, there is no contractual duty for council to continue allowing Crabb to
get from his land to the road, it would be unfair for council to go back on its word
Hence under equity, relief will be provided to Crabb
Consider:
Does equity’s provision of protection for B undermine common law?
Equitable interests can bind many people, but they are weaker and not as extensive as
property rights → much easier to have a defence
Equitable interests usually involve one person under a duty to another → possible for a legal
estate to exist concurrently to the same piece of land can be compatible
Equitable interest in Land – Trusts
A relationship where the legal owner of property (trustee) is obligated in equity to hold it for the
benefit of another person (the beneficiary, B)
Trustee comes under a duty towards B not to use her ownership rights for her own benefit, but
exclusively for B’s (unless trustee is also a beneficiary of the trust, then she may use them for the
benefit of both of them)
s.6(1) & (6) TOLATA 1996:
A trust does not give the beneficiary ownership rights – these remain with the trustee
But a beneficiary under a trust of land has an equitable interest in the land, which is a right
capable of binding a third party such as C
Advantages of a trust
Allows the legal owner of property to
o Divide the benefits of her ownership right successively
Eg. Land to B1 for life and then to B2
o Divide the benefits of her ownership right concurrently
Eg. Shares to B1 and dividends from same shares to B2
Purposes of equity
They supplement common law rules
o Prevents opportunistic exploitation of common law rules
o Serves as a form of standard instead of strict rules [moral standards]
o Gives more flexibility
o Eg. Trust
Proprietary Estoppel under equity
Crabb v Arun DC
Although under common law, there is no contractual duty for council to continue allowing Crabb to
get from his land to the road, it would be unfair for council to go back on its word
Hence under equity, relief will be provided to Crabb
Consider:
Does equity’s provision of protection for B undermine common law?
Equitable interests can bind many people, but they are weaker and not as extensive as
property rights → much easier to have a defence
Equitable interests usually involve one person under a duty to another → possible for a legal
estate to exist concurrently to the same piece of land can be compatible
Equitable interest in Land – Trusts
A relationship where the legal owner of property (trustee) is obligated in equity to hold it for the
benefit of another person (the beneficiary, B)
Trustee comes under a duty towards B not to use her ownership rights for her own benefit, but
exclusively for B’s (unless trustee is also a beneficiary of the trust, then she may use them for the
benefit of both of them)
s.6(1) & (6) TOLATA 1996:
A trust does not give the beneficiary ownership rights – these remain with the trustee
But a beneficiary under a trust of land has an equitable interest in the land, which is a right
capable of binding a third party such as C
Advantages of a trust
Allows the legal owner of property to
o Divide the benefits of her ownership right successively
Eg. Land to B1 for life and then to B2
o Divide the benefits of her ownership right concurrently
Eg. Shares to B1 and dividends from same shares to B2
