Definition of COMPENSATION


COMPENSATION

chancery practice. The performance of tbat which a
court of chancery orders to be done on relieving a party who has broken
a condition, which is to place the opposite party in no worse situation
than if the condition had not been broken.

2. Courts of equity will not relieve from the consequences of a broken condition,
unless compensation can be made to the opposite party. Fonb. c. 6; s. 51
n. (k) Newl. Contr: 251, et. seq.

3. When a simple mistake, not a fraud, affects a contract, but does not
change its essence, a court of equity will enforce it, upon making compensation
for the error, The principle upon wbich courts of equity act," says
Lord Chancellor Eldon, "is by all the authorities brought to the true
standard, that though the party had not a title at law, because he had not
strictly complied with the terms so as to entitle him to an action, (as
to time for instance,) yet if the time, though introduced, as some time
must be fixed, where something is to be done on one side, as a consideration
for something to be done on the other, is not the essence of the contract;
a material object, to which they looked in the first conception of it, even
though the lapse of time has not arisen from accident, a court of equity
will compel the execution of the contract upon this ground, that one party
is ready to perform, and that the other ma, have performance in substance
if he will permit it." 13 Ves. 287. See 10 Ves. 505; 13 Ves. 73, 81,
426; 6 Ves. 675; 1 Cox, 59.

Source: Bouviers Law Dictionary 1856 Edition

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