Promissory Estoppel Flashcards
What is Promissory Estoppel?
An equitable remedy that stops a person from resiling on promises that the other party has relied on. It cannot be used for valid contracts
What happened in Central London Properties Trust v High Trees?
Block of flats was to be leased for £2500 for 99 years. WW2 began and it became difficult to find tenants, they reduced the rent to £1250 and after the war attempted to increase it back to its original. It was held that estoppel prevented them from increasing it on the basis that the reduced price induced people to rent, without ever being told of the intention of rent increases.
What was the 6 stage test established by McDermott
- Pre-Existing Legal Relationship
- An Unambiguous Representation
- Reliance by the Representee
- An Element of Unfairness
- Estoppel used as a Defence and not a cause of Action
- The Remedy is a Matter for the court
What is the Irish decision on pre-existing legal relationship?
Revenue Commissioners v Moroney - pub was to be transferred to sons before a man died to avoid death duties, revenue tried to get him to pay tax on the purported sum the son “purchased” it for, the dad tried to rely on the fact he had no pre-existing relationship with revenue. The court did not agree
What was the English Decision on Pre-Existing legal relationship
Coombs v Coombe - Man promised to pay his wife £100 a month, she never claimed as she knew he never had the money, when he came into money she attempted to claim it in arrears. The court held that there was no pre-existing legal relationship under their divorce agreement meaning she could not use estoppel to enforce the agreement and claim for the money
In which case did someone try to use estoppel to enforce an indemnity to purchase copies of work produced? But the court held it was not ambiguous enough on the basis that it was a positive representation and not mere statement?
Folens v Minister for Education
In which case did the plaintiff not have to run sewage piping under their property due to the fact they never clearly and unambiguously promised that they would?
Bennett Construction v Greene
What is the key Irish decision on Reliance by the representee to their detriment?
Association of General Medical Practitioners v Minister for Health - It was held the promisee must have altered their position in reliance to a promise that was given to them
Which UK case held that Detriment was not always required?
WJ Alan & Co LTD v El Nasr Export & Impact
Which case defined Detrimental Reliance?
JR - Detrimental Reliance is when a representee acts on a representation or alters his position to his or her detriment
What was held in Industrial Yarns LTD v Greene?
The representee must show that what was said or done by the representor influences both the belief and conduct of the representee to his detriment
In which case did the court hold that a party will not be allowed to act contrary to a promise where it would be deemed inequitable having regard to the dealings which have taken place between the parties?
Truck and Machinery Sales v Marubeni
Which case decided that estoppel was a suspensions tool, suspending the rights of parties not extinguishing them?
Tool Metal Manufacturing v Tungsten
Which cases established that estoppel could only be used as a shield?
Chartered Trust Ireland v Healy
Coombe v Coombe
Cullen v Cullen
Which case stated that there may be technical truth to why the rule of promissory estoppel being used as a sword is needed, but is not largely relevant in terms of its operative effect?
Coutney v McCarthy
