Equity in commerce: Too much and too little?

• Main Author: YIP, Man
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2023
• Subjects: Asian Studies; Business Organizations Law; Jurisprudence
• Online Access: https://ink.library.smu.edu.sg/sol_research/4337; https://ink.library.smu.edu.sg/context/sol_research/article/6295/viewcontent/9781509960101.ch_020_av.pdf
• Institution: Singapore Management University

The interaction and clash between equity and commerce have attracted much attention from judges and academics in recent years. Commercial lawyers may complain about equity introducing uncertainty into commercial endeavours and at times, (mis-)applying the ‘moral standards of the vicarage’ to actors in commercial dealings. However, the objections are not directed at all aspects of equity, but are usually addressed to some ‘disfavoured parts of it’, such as the creation of a new obligation or discretionary remedies. On the other hand, from the perspective of equity lawyers, equity’s interplay with commerce may lead to the contractualisation or commercialisation of equitable doctrines, thereby lowering the standards that equity traditionally expects of actors such as trustees and fiduciaries.