Legal Definitions - equity term

An equity term refers to a specific period of time during which a court, particularly one exercising equitable jurisdiction, conducts its business. It can also refer to a condition or provision within a legal agreement or court order that is governed by the principles of equity, which aim to provide fairness and justice where strict common law might be inadequate.

• Imagine a state's Supreme Court designates specific months each year as its equity term, during which it prioritizes hearing appeals related to equitable remedies such as injunctions, trusts, or specific performance of contracts.

  This illustrates "equity term" as a defined period when a court focuses on cases requiring equitable considerations, ensuring these matters receive dedicated attention.

• Consider a contract for the sale of a rare, custom-built yacht. An equity term in this contract might specify that if the seller breaches the agreement, the buyer has the right to seek specific performance (a court order compelling the seller to complete the sale) rather than just monetary damages, because the yacht is unique and cannot be easily replaced.

  Here, "equity term" refers to a contractual provision that allows for an equitable remedy, reflecting the principle that justice may require more than just financial compensation in certain situations.

• A court issues a permanent injunction against a company, prohibiting it from polluting a local river. The equity term of this injunction is indefinite, meaning the prohibition remains in effect perpetually unless modified by a subsequent court order.

  In this context, "equity term" signifies the duration or ongoing nature of an equitable remedy, emphasizing its role in achieving lasting fairness and preventing future harm.