Promissory Estoppel Flashcards
What is promissory estoppel?
It is an equitable doctrine.
Used to enforce an agreement that might otherwise fail due to lack of consideration.
Estoppel stops party A from withdrawing a promise made to party B, if party B has reasonably relied on promise.
CASE: Coombs v Coombs
CASE: Hughes v Met Railway Comp.
CASE: Central London Property Trust v High Trees House
Important - very specific circumstances must exist for principle to be upheld.
It can’t replace consideration and it has strict limits which have been narrowed down in later judgements.
CASE: Coombs v Coombs
(Promissory estoppel)
Judge held that, “once a party has acted on a promise, the one who gave the promise can’t afterwards be allowed o revert to the previous legal relations as if no such promise had been made”
CASE: Hughes v Met Railway Comp.
(Promissory estoppel)
This case initially introduced the doctrine.
6 month notice to repair was served on the tenant but tenant entered into negotiations to surrender the lease.
6 month notice period passed and landlord server notice to eject tenant.
Held notice period was suspended during time negations as inequitable to do otherwise.
CASE: Central London Property Trust v High Trees House
(Promissory estoppel)
Dispute following WW2 regarding rental flats in London.
Owners rented flats for specified sum per year.
Claimant agreed to reduce rent by 50% agreement lasted until end of the war.
Claimant was estopped from going back on promise but permitted to revert to full rent after war ended.
What is the scope of estoppel?
- Estoppel can be only suspensory
In H v MRC - the obligation to repair was reinstalled after lease negotiations broke down - Estoppel can sometimes extinguish some tights all together
In CLP v HT - the right to receive full rent during the was extinguished
The position as to whether or not promissory estoppel will extinguish or suspend rights depends on nature of promise and the circumstances of the agreement.
