The Collaborative International Dictionary of English v.0.48:

Chancery \Chan"cer*y\, n. [F. chancellerie, LL. cancellaria,
   from L. cancellarius. See Chancellor, and cf.
   Chancellery.]
   1. In England, formerly, the highest court of judicature next
      to the Parliament, exercising jurisdiction at law, but
      chiefly in equity; but under the jurisdiction act of 1873
      it became the chancery division of the High Court of
      Justice, and now exercises jurisdiction only in equity.
      [1913 Webster]

   2. In the Unites States, a court of equity; equity;
      proceeding in equity.
      [1913 Webster]

   Note: A court of chancery, so far as it is a court of equity,
         in the English and American sense, may be generally, if
         not precisely, described as one having jurisdiction in
         cases of rights, recognized and protected by the
         municipal jurisprudence, where a plain, adequate, and
         complete remedy can not be had in the courts of common
         law. In some of the American States, jurisdiction at
         law and in equity centers in the same tribunal. The
         courts of the United States also have jurisdiction both
         at law and in equity, and in all such cases they
         exercise their jurisdiction, as courts of law, or as
         courts of equity, as the subject of adjudication may
         require. In others of the American States, the courts
         that administer equity are distinct tribunals, having
         their appropriate judicial officers, and it is to the
         latter that the appellation courts of chancery is
         usually applied; but, in American law, the terms equity
         and court of equity are more frequently employed than
         the corresponding terms chancery and court of chancery.
         --Burrill.
         [1913 Webster]

   Inns of chancery. See under Inn.

   To get (or to hold) In chancery (Boxing), to get the head
      of an antagonist under one's arm, so that one can pommel
      it with the other fist at will; hence, to have wholly in
      One's power. The allusion is to the condition of a person
      involved in the chancery court, where he was helpless,
      while the lawyers lived upon his estate.
      [1913 Webster]

WordNet (r) 3.0 (2006):

chancery
    n 1: a court with jurisdiction in equity [syn: chancery,
         court of chancery]
    2: an office of archives for public or ecclesiastic records; a
       court of public records

Moby Thesaurus II by Grady Ward, 1.0:

66 Moby Thesaurus words for "chancery":
   appellate court, archives, assizes, booking office, box office,
   branch, branch office, cabinet, chambers, chancellery,
   chancery court, circuit court, civil court, closet,
   common-law court, conciliation court, consulate,
   corporate headquarters, county court, court of appeals,
   court of assize, court of chancery, court of claims,
   court of conscience, court of equity, court of errors,
   court of honor, court of inquiry, court of probate,
   court of record, court of requests, court of review,
   court of sessions, court of wards, criminal court, den,
   district court, divorce court, embassy, equity court,
   executive office, family court, files, headquarters, home office,
   hustings, hustings court, juvenile court, kangaroo court, legation,
   main office, mock court, moot court, night court, office,
   police court, prize court, probate court, register office,
   registry, sessions, shop, study, superior court, ticket office,
   traffic court



Bouvier's Law Dictionary, Revised 6th Ed (1856):

CHANCERY. The name of a court exercising jurisdiction at law, but mainly in
equity.
     2. It is not easy to determine how courts of equity originally obtained
the jurisdiction they now exercise. Their authority, and the extent of it,
have been subjects of much question, but time has firmly established them;
and the limits of their jurisdiction seem to be in a great degree fixed and
ascertained. 1 Story on Eq. ch. 2; Mitf. Pl. Introd.; Coop. Eq. Pl. Introd.
See also Butler's Reminiscences, 38, 40; 3 Bl. Com. 435; 2 Bin. 135; 4 Bin.
50; 6 Bin. 162; 2 Serg. & R. 356; 9 Serg. & R. 315; for the necessity,
origin and use of courts of chancery.
     3. The judge of the court of chancery, often called a court of equity,
bears the title of chancellor. The equity jurisdiction, in England, is
vested, principally, in the high court of chancery. This court is distinct
from courts of law.  "American courts of equity are, in some instances,
distinct from those of law, in others, the same tribunals exercise the
jurisdiction both of courts of law and equity, though their forms of
proceeding are different in their two capacities. The supreme court of the
United States, and the circuit courts, are invested with general equity
powers, and act either as court's of law or equity, according to the form of
the process and the subject of adjudication. In some of the states, as New
York, Virginia, and South Carolina, the equity court is a distinct tribunal,
having its appropriate judge, or chancellor, and officers. In most of the
states, the two jurisdictions centre in the same judicial officers, as in
the courts of the United States; and the extent of equity jurisdiction and
proceedings is very various in the different states, being very ample in
Connecticut, New York, New Jersey, Maryland, Virginia, and South Carolina,
and more restricted in Maine, Massachusetts, Rhode Island, and Pennsylvania.
But the salutary influence of these powers on the judicial administration
generally, by the adaptation of chancery forms and modes of proceeding to
many cases in which a court of law affords but an imperfect remedy, or no
remedy at all, is producing a gradual extension of them in those states
where they have been, heretofore, very limited."
     4. The jurisdiction of a court of equity differs essentially from that
of a court of law. The remedies for wrongs, or for the enforcement of
rights, may be distinguished into two classes those which are administered
in courts of law, and those which are administered in courts of equity. The
rights secured by the former are called legal; those secured by the latter
are called equitable. The former are said to be rights and remedies at
common law, because recognized and enforced in courts of common law. The
latter are said to be rights and remedies in equity, because they are
administered in courts of equity or chancery, or by proceedings in other
courts analogous to those in courts of equity or chancery. Now, in England
and America, courts of common law proceed by certain prescribed forms, and
give a general judgment for or against the defendant. They entertain
jurisdiction only in certain actions, and give remedies according to the
particular exigency of such actions. But there are many cases in which a
simple judgment for either party, without qualifications and conditions, and
particular arrangements, will not. do entire justice, ex aequo et bono, to
either party. Some modification of the rights of both parties is required;
some restraints on one side or the other; and some peculiar adjustments,
either present or future, temporary or perpetual. Now, in all these cases,
courts of common law have no methods of proceeding, which can accomplish
such objects. Their forms of actions and judgment are not adapted to them.
The proper remedy cannot be found, or cannot be administered to the full
extent of the relative rights of all parties. Such prescribed forms of
actions are not confined to our law. They were known in the civil law; and
the party could apply them only to their original purposes. In other cases,
he had a special remedy. In such cases, where the courts of common law
cannot grant the proper remedy or relief, the law of England and of the
United States (in those states where equity is administered) authorizes an
application to the courts of equity or chancery, which are not confined or
limited in their modes of relief by such narrow regulations, but which grant
relief to all parties, in cases where they have rights, ex aequo et bono,
and modify and fashion that relief according to circumstances. The most
general description of a court of equity is, that it has jurisdiction in
cases where a plain, adequate and complete remedy cannot be had at law that
is, in common law courts. The remedy must be plain; for, if it be doubtful
and obscure at law, equity will assert a jurisdiction. So it must be
adequate at law; for, if it fall short of what the party is entitled to,
that founds a jurisdiction in equity. And it must be complete; that is, it
must attain its full end at law it must reach the whole mischief and secure
the whole right of the party, now and for the future otherwise equity will
interpose, and give relief. The jurisdiction of a court of equity is
sometimes concurrent with that of courts of, law and sometimes it is
exclusive. It exercises concurrent jurisdiction in cases where the rights
are purely of a legal nature, but where other and more efficient aid is
required than a court of law can afford, to meet the difficulties of the
case, and ensure full redress. In some of these cases courts of law formerly
refused all redress but now will grant it. But the jurisdiction having been
once justly acquired at a time when there was no such redress at law, it is
not now relinquished. The most common exercise of concurrent jurisdiction is
in cases of account, accident, dower, fraud, mistake, partnership, and
partition. The remedy is here often more complete and effectual than it can
be at law. In many cases falling under these heads, and especially in some
cases of fraud, mistake and accident, courts of law cannot and do not afford
any redress; in others they do, but not always in so perfect a manner. A
court of equity also is assistant to the jurisdiction of courts of law, in
many cases, where the latter have no like authority. It will remove legal
impediments to the fair decision of a question depending at law. It will
prevent a party from improperly setting up, at a trial, some title or claim,
which would be inequitable. It will compel him to discover, on his own oath,
facts which he knows are material to the rights of the other party, but
which a court of law cannot compel the party to discover. It will perpetuate
the testimony of witnesses to rights and titles, which are in danger of being

lost, before the, matter can be tried. It will provide for the safety of
property in dispute pending litigation. It will counteract and control, or
set aside, fraudulent judgments. It will exercise, in many cases, an
exclusive jurisdiction. This it does in all cases of morely equitable
rights, that is, such rights as are not recognized in courts of law. Most
cases of trust and confidence fall under this head. Its exclusive
jurisdiction is also extensively exercised in granting special relief beyond
the reach of the common law. It will grant injunctions to prevent waste, or
irreparable injury, or to secure a settled right, or to prevent vexatious
litigations, or to compel the restitution of title deeds; it will appoint
receivers of property, where it is in danger of misapplication it will
compel the surrender of securities improperly obtained; it will prohibit a
party from leaving the country in order to avoid a suit it will restrain any
undue exercise of a legal right, against conscience and equity; it will
decree a specific performance of contracts respecting real estates; it will,
in many cases, supply the imperfect execution of instruments, and reform and
alter them according to the real intention of the parties; it will grant
relief in cases of lost deeds or securities; and, in all cases in which its
interference is asked, its general rule is, that he who asks equity must do
equity. If a party, therefore, should ask to have a bond for a usurious debt
given up, equity could not decree it, unless he could bring into court the
money honestly due without usury. This is a very general and imperfect
outline of the jurisdiction of a court of equity; in respect to which it has
been justly remarked, that, in matters within its exclusive jurisdiction,
where substantial justice entitles the party to relief, but the positive law
is silent, it is impossible to define the boundaries of that jurisdiction,
or to enumerate, with precision, its various principles." Ency. Am. art.
Equity. Vide Fonb. Eq.; Story on Eq.; Madd. Ch. Pr.; 10 Amer. Jur. 227;
Coop. Eq. Pl.; Redesd. Pl.; Newl. Cb. Practice; Beame's Pl. Eq.; Jeremy on
Eq.; Encycl. Amer. article Equity, Court.