Equity looks to the intent rather than the form
A court of equity looks to the substance of a transaction and not to its outward form. It treats as done what the parties meant to do.
Example
A borrower hands over the title deeds of his house to a lender as security for a loan, without a registered mortgage. Equity treats it as a mortgage.
Statutory link
Section 58(f) of the Transfer of Property Act, 1882: a mortgage by deposit of title deeds.
Exam tip
Asked with the mortgage by deposit of title deeds.
Memory trick
Substance over form.
Key takeaway
Equity gives effect to the real intention of the parties.
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