Part I will show how information cost considerations lead private law, and property in particular, to exhibit the familiar features of the rule of law. It will also argue that a less formal safety valve, roughly identified with historical traditions of equity, is needed in order to protect formal law against evasion by opportunists. Part II will demonstrate that this micro equity and its functions scale up to the system of law itself: the rule of law is vulnerable to opportunistic evasion without some ability to invoke larger moral considerations in at least a limited way. This can be termed “macro equity.” Part III draws out some implications of the convergence between the information cost theory and “natural equity.”