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Maxim Follows Law

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Question 1: Explain the maxim “Equity follows the law”.

Meaning

Equity: An English law that was developed hundreds or years ago, this law was created as people would complain to the king that the common law was harsh and prevented justice from prevailing. Equity is constructed on a judicial estimate of fairness as opposed to the inflexible and harsh rules of the common law.

When finding a solution to an issue or problem in equity, the court of equity will first always seek the legal position, and then take their lead from the common law.
The maxim ‘Equity follows law” supports the fact that a court of equity has no intent to override the common law., but simply works as a supplement to the common law, the maxim clearly states that equity will not allow a remedy that conflicts with law.

Cases

The following case is an excellent example on how equity follows the law.

Graf v. Hope Building Corporation

Mr. Graf was given a mortgage on the Hope Corporation’s property. Hope was required to pay quarterly payments of interest to Mr. Graf. The bookkeeper for Hope discovered that she accidently sent a check for a particular quarterly interest payment that was $400 short. Mr. Graf was then immediately notified of the mistake and was told by the bookkeeper that the issue will be resolved as soon as the president of Hope returns from holiday, as he is the only individual authorized to sign checks for Hope Corporation. When the president of Hope Corporation returned from holiday the bookkeeper neglected to tell him of her mistake. Graf then brought suit to foreclose the mortgage. Immediately the president of Hope sent a check to Mr. Graf that covered the $400 they owed to Mr. Graf. Unfortunately for Hope, Mr. Graf rejected the payment because the payment was overdue. Mr. Graf was then both successful in the trail court and the Appellate division. Hope then

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