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Forums › ACCA Forums › ACCA LW Corporate and Business Law Forums › Is fixed charge as same as equitable charge?
Hi,everyone.
Is fixed charge as same as equitable charge?
Thax
Hi
No, they are not the same. An equitable charge is stated as such to distinguish it from a legal charge. And by definition, a fixed charge is a legal charge.
“Equitable” suggests that it’s not a formal, legally enforceable charge – it’s rather more INformal and exists in equity ( ie, in fairness )
I don’t know if that’s come out as clearly as I had hoped. Is it any clearer for you?
