Promissory Estoppel

Question 1

What is Promissory Estoppel

Answer 1

it is the legal principle that a promise is enforceable by law, even if made without formal consideration when a promisor has made a promise to a promisee who then relies on that promise to his subsequent damage.

Question 2

What are the three requirements of Promissory Estoppel? + cases

Answer 2

1. A (party) has made a clear and unequivocal promise not to enforce legal rights against B (other party) - Woodhouse
2. B has relied on the promise
3. It would be inequitable for A to resile (It can be used when there is already a contract between the two parties) - D&C Builders v Rees

Question 3

What does it mean by the promise can be implied + case

Answer 3

if one party implies something will happen in a period of time and it doesn’t then it can be promissory estoppel - Hughes v Metropolitan Railway

Question 4

What does ‘Change of position’ mean as a reliance? + case

Answer 4

where promisee bases their affairs over a long period on the promise, so that it is hard to say how things would have been otherwise – Guest v Guest

Question 5

What was held in the case of High Trees?

Answer 5

Promissory estoppel only serves to suspend, not wholly to extinguish, the existing obligations

Question 6

What did the case of Combe v Combe state?

Answer 6

Promissory Estoppel cannot be used to generate additional obligations/rights and cannot be used as a ‘cause of action’ but only as a defence to a claim to enforce a promise (shield not a sword)

Question 7

What is a similarity between contractual liability and promissory estoppel?

Answer 7

it is both dependant on a clear unequivocal promise being made

Question 8

What are some differences between contractual liability and promissory estoppel?

Answer 8

-Contractual liability can create new rights/obligations whereas estoppel only enforces relieving promises.
-Consideration is needed for contractual liability and not for estoppel.
-For estoppel a person is only entitled to that relief which would prevent them from suffering prejudice, in contract they are entitled to the full expected value of the promise.

Question 9

What are the pros if promissory estoppel could be used as a ‘sword’ instead?

Answer 9

If it was able to enforce promises then it may lead to:
-greater flexibility
-more coherence in the law