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Simple English definitions for legal terms
perfect equity
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A quick definition of perfect equity:
Equity means being fair and doing what is right. It is a set of rules that help make sure everyone is treated equally. Sometimes, the law doesn't cover everything, so equity is used to make sure people are treated fairly in those situations. It can also refer to the ownership someone has in a business or property. Perfect equity means having the right to something, but not having the official paperwork to prove it yet. Overall, equity is about being fair and just.A more thorough explanation:
Perfect equity is a term used in law to describe a situation where a person or entity has a legal right or interest that is recognized by a court of equity. It refers to a situation where the only thing lacking for the right or interest to be recognized as a legal title is a formal conveyance or other investiture that would make it cognizable at law.
For example, if a person has paid the full amount due for a piece of real estate but has not yet received a deed, they have perfect equity in the property. This means that they have a legal right to the property, but they cannot yet claim ownership of it in a court of law because they do not have a formal title.
Another example of perfect equity is when a person has an ownership interest in a business. This means that they have a share in the company and are entitled to a portion of its profits, but they do not have a legal title to the business itself.
Overall, perfect equity refers to a situation where a person or entity has a legal right or interest that is recognized by a court of equity, but that right or interest is not yet recognized as a legal title because of a lack of formal conveyance or other investiture.