Exam Review and Integrated Equity Problem Solving
Teaching narrative
Equity problems are easiest when analysed in layers. First identify the relationship and property. Second identify the source of the equitable obligation or interest. Third classify the breach, competing claim or transfer. Fourth select and test the remedy. Finally consider bars, defences and third-party rights.
Do not begin with a remedy. A constructive trust, injunction, account of profits or tracing claim must be supported by a substantive equitable basis. Likewise, do not identify “unconscionability” as a universal free-standing cause of action. Name the actual doctrine and its elements.
For fiduciary problems: relationship → scope → conflict/profit → consent → remedy. For trusts: creation → certainties → formalities → constitution → trustee duties/powers → breach → remedy. For tracing: original property → substitutions/mixing → current asset → third parties → remedy. For assignments: subject matter → mode → statutory route → equitable route → notice → priority.
The strongest conclusions are conditional where facts are incomplete. State the most likely result, identify the decisive fact and explain what changes if that fact is proved the other way.
Rule and exam map
- Use Issue → exact doctrine/statute → authority → application → counterargument → remedy → conclusion.
- Separate proprietary and personal claims.
- Separate liability from remedy.
- Always address equitable bars and third-party rights where the facts raise them.
Leading authorities
Fiduciary scope.
Third-party/accessorial liability.
Express trust intention.
Resulting trusts.
Constitution and voluntary transfers.
Equitable assignments.
Problem-solving method
Issue. Identify the equitable relationship, property or transaction and break it into sub-issues.
Law. State the exact doctrine, any applicable statute, and the authority that explains the rule.
Application. Apply each element to the facts, address the strongest counterargument, then identify the consequence or remedy.
Conclusion. Give a reasoned result and identify any fact that could change the outcome.
Tutorial-style problem
A trustee/director uses trust information to acquire an opportunity personally, transfers part of the resulting profit to an associate who knows of the trust relationship, mixes the balance with personal funds, and later assigns a royalty stream from the new venture to a family member.
Model answer
Break the facts into distinct issues. Analyse fiduciary relationship and scope, conflict/profit, and consent. Then assess the associate under accessorial/recipient principles. Trace the remaining profit through the mixed fund and identify available proprietary or personal relief. Finally characterise the royalty assignment and test statutory/equitable effectiveness. Conclude issue by issue, then explain how the remedies interact so that the claimant is restored without double recovery.