Paralegal Advanced Competency Exam (PACE) Practice Exam

Which statement best describes the role of common law in relation to equity?

1. Equity overrides all common law principles

2. Equity was developed to address limitations of common law

3. Common law is more flexible than equity

4. Equity and common law are the same

The correct answer is: Equity was developed to address limitations of common law

The statement that equity was developed to address limitations of common law best captures the relationship between the two legal doctrines. Historically, common law emerged in England to provide a standardized system of justice based on precedents established by previous court decisions. However, the rigid application of common law principles often led to outcomes that were perceived as unjust or inadequate in addressing certain situations. Equity arose as a response to these shortcomings, providing a body of law that emphasized fairness and justice in situations where common law fell short. Courts of equity were established to offer remedies that were not available under common law, such as injunctions or specific performance, which allowed for more tailored and just solutions to disputes. This fundamentally illustrates how equity serves as a supplementary system designed to enhance, rather than replace, common law by addressing its limitations and providing more equitable remedies. The other statements do not accurately reflect the nuanced relationship between common law and equity. Equity does not override all common law principles; instead, it complements them. While common law is often seen as more structured, it lacks the flexibility and discretion that equity embodies. Finally, the assertion that equity and common law are the same fails to recognize their distinct origins, purposes, and applications within the legal framework.