Promisory Estoppel Flashcards
Hughes v Metropolitan Railway Co (1876-77)
If parties with an existing contract decide that part of a contract will not be enforced, a party cannot then enforce the contract where it would be inequitable to do so, provided Lord Denning with inspiration.
Central London Property Trust v High Trees House (1947)
Leaseholder of block of flats paid less during the blitz as there was low occupancy rate, under the common law the agreement wasn’t binding as there was no consideration, Lord Denning introduced estoppel as an alternative, to apply where a promise was made with the intention to create legal relations and it was acted upon by the party to which it was made.
Combe v Combe (1951)
Married couple separated, husband agreed to pay wife £100pa maintenance, failed to do so, wife could not apply promissory estoppel as there was no preexisting contract and it cannot create legal rights, only enforce existing rights.
Tungsten Electric Co v Tool Metal Mfg Co (1950)
“The rule that protects a party in circumstances such as these is a broad rule of equity and justice” - equity requires notice before a party insists on his strict legal rights.
Collier v P&MJ Wright Holdings Ltd (2008)
A partnership went bust, each of the three partners could be sued for anything up to the full amount owed, creditor promised not to sue C for anything more than 1/3 of the amount owed, promissory estoppel applied. Obiter, if a debtor offers part payment and the creditor voluntarily accepts and in reliance of the offer the debtor makes part payment the creditor will be bound by estoppel.
D&C Builders v Rees (1966)
R did not pay builders, he eventually offered them part payment knowing that they were in financial difficulty and would be likely to accept, usually the doctrine favours the debtor and prevents the creditor from existing on his strict legal rights but in this case it would be inequitable to allow the creditor to enforce the new promise.
Barton v Armstrong (1975)
Battle between B and A for control of a company, A suggested he be removed from the company on profitable terms, threatened to kill B if he didn’t agree, the duress became a vitiating factor.
Walton Stores v Maher (1988) (Aus)
M agreed to demolish a building and construct a store for Walton Stores, begun demolition before completion of contract, WS then dropped out. No existing legal rights, but the Australian court applied estoppel anyway, allowing it to create new legal rights.
