Definition - What does Equity mean?
Equity, in the context of the law, refers to a legal standard used by some courts where the court makes its decision partially based on what is right and fair. Courts will generally attempt to decide cases based on the laws of that jurisdiction, but many do look for the most equitable solution to the case.
Justipedia explains Equity
Courts ruling with equity began in England during the 19th Century. The Court of Chancery's sole obligation was to make rulings on cases based on equity alone. The Court of Chancery was first established in England because a majority of the people living in England felt as though there were many laws enacted by the legislator that were unjust. Many equitable laws have been the beginnings of the common law in the United States.