Under the partial equity method of accounting for an investment a legal system, it is a body of law that addresses concerns that fall outside the jurisdiction of Common Law. Equity is also used to describe the money value of property in excess of claims, liens, or mortgages on the property. England, where it began as a response to the rigid procedures of England’s law courts. Through the thirteenth and fourteenth centuries, the judges in England’s courts developed the common law, a system of accepting and deciding cases based on principles of law shaped and developed in preceding cases.
Pleading became quite intricate, and only certain causes of action qualified for legal redress. Frustrated plaintiffs turned to the king, who referred these extraordinary requests for relief to a royal court called the Chancery. The Chancery was headed by a chancellor who possessed the power to settle disputes and order relief according to his conscience. The decisions of a chancellor were made without regard for the common law, and they became the basis for the law of equity. Equity and the common law represented opposing values in the English legal system. The common law was the creation of a judiciary independent from the Crown.