Definition: Equity is a third source of law (besides statutes and common law). It is judge-made law, coming from the courts.
Introduced were new remedies and new procedures. Broadest meaning: fairness, leveling.

Why was Equity necessary? As the potential for change of the common law waned (diminished) through the doctrine of binding precedent, new ways of resolving conflicts were established. For example, other-than-money-remedies were introduced. New Rights: Beneficiaries can benefit from a trust. New procedures: Allowed subpoenaing of witnesses. Equity is most vivid in the law of chancery, where it had first been developed.

Important equity remedies and institutions
- specific performance (contract law)
- injunction
- subpoenaing witnesses
- trusts

Equity Principles can be applied when following the strict letter of the law would lead, objectively, to injustice. Some important principles of Equity:
(1) He who comes to equity must come with clean hands. He who seeks equity must do equity. (No one can benefit from equity who has himself acted dishonestly).
(2) Equity will not suffer a wrong to be without a remedy. (Anyone who has to bear the consequences of a wrongful act must be compensated).
(3) Do the right and fair thing.
(4) Delay defeats equity. (Remedies must be sought in a reasonable time, defined by the court if there is no statute).

Equity and the law:
(1) Equity follows the law.
(2) In conflict or variance between the rules of equity and the rules of common law, the rules of equity shall prevail.

Today, equity is more inflexible than the law itself. With the nineteenth-century merger of the independent chancery and common law courts into the High Court, equity and common law were no longer treated as separate systems of law to be applied by separate courts. But the idea of "two rivers running in one bed" is still vivid.