Promissory Estoppel

Question 1

What does promissory estoppel allow?

Answer 1

a promise to be enforced despite not being supported by consideration = aims to protect a party who has relied on a promise.

Question 2

When will a promise be made binding?

Answer 2

promise intended to create legal relations + to the knowledge of the person making the promise, was going to be acted on by the person to whom it was made n was in fact acted on

Question 3

Promissory estoppel can only act as a ….

Answer 3

defence (shield) and not a cause of action (sword)

Question 4

In order to sue upon a promise given to you it must be shown that …..

Answer 4

you have provided consideration in return for it.

Question 5

What must the promise be so that existing legal rights won’t be fully enforced?

Answer 5

• clear and unequivocal promise/ representation.
• intended to affect legal relations + not simply amount to a gratuitous privilege given to the promisee
• express or implied

Question 6

Is detrimental reliance required for promissory estoppel?

Answer 6

No - sufficient if promisee made a change of position in reliance on the promise so that it would be inequitable to allow the promisor to go back on their promise.

Question 7

How will the courts view if detrimental reliance is present?

Answer 7

= a factor weighed in favour of granting the defence

Question 8

What will the court do when exercising their discretion on whether or not they should grant the defence?

Answer 8

conduct of both parties - those who seek equity must do equity.

Question 9

Does promissory estoppel suspend or extinguish legal rights?

Answer 9

Generally - suspends, but may extinguish if its just + equitable

Question 10

What rule of consideration does promissory estoppel provide an exception to?

Answer 10

Part payment of a debt without fresh consideration= doesn’t discharge debt obligation.