This study focuses on equity and fairness in Islamic law and their sources in the Qur'an, the sayings of the Prophet Muhammad, and the era of the Companions of the Prophet in the first two centuries of Islam. Included are discussions of equity as a basis for the formulation of Islamic law and an exploration of the approaches of three of schools of law: the Hanafi, the Maliki, and the Hanbali. This analysis also attempts to apply the concepts of equity and fairness to contemporary issues such as Islamic banking, business transactions, charitable endowments, pension funds, and other long-term savings accounts.