CIMA BA4 · Chapter 9 · Question 8 of 10
Under English law, which statement about the relationship between common law and equity is correct?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Where a rule of common law conflicts with a rule of equity, equity prevails
Explanation
Since the Judicature Acts 1873-75 the same courts administer both common law and equity, and where the two conflict, equity prevails. Equity has not been abolished: remedies such as specific performance, injunctions and rescission remain available. They are discretionary, unlike common law damages, which are available as of right once a breach of contract is proved.
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