Question by  darkmatter (124)

What is equity law?

My friend said they were resolving an issue with equity law instead of money, and I wasn't sure what he was talking about.


Answer by  Dean (4035)

Equity is ownership. If a house is worth $200,000 and there's a $100,000 mortgage, the owner has $100,000 equity. This means that that much of the house (or business, etc.) can be offered as collateral in financial dealings. Your friend, instead of paying a debt with cash, may have put up his equity in his home or business.


Answer by  Mary (2095)

Equity means fairness and would be any resolution that isn't strictly money. If you want someone to do something an equitable resolution is what you are seeking.


Answer by  tamarawilhite (17883)

If a business owner is in debt to you, they can offer you a share of the business instead of payment of the debt. You then receive the percentage of profits based on your ownership share. This is called an equity stake. However, unlike stock in major companies, equity shares of a small business are not easy to sell.


Answer by  Zigi (4)

Equity law is a set of legal principles, in which courts can use their discretion to apply justice. The most important distinction is in the remedies offered.

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