Promissory Estoppel

Question 1

What is Proprietary Estoppel?

Answer 1

a legal doctrine that prevents someone from denying a right or claim they’ve previously led another party to believe they possess if the other party relied on that belief to their detriment

Question 2

What is promissory estoppel?

Answer 2

Promissory estoppel prevents a party from going back on a promise made, even in the absence of a formal contract, when the other party has reasonably relied on the promise to their detriment

Question 3

What is the key difference between proprietary and promissory estoppel in terms of the nature of the claim?

Answer 3

Proprietary estoppel relates to land and property rights, whereas promissory estoppel deals with promises and contractual obligations, particularly where no formal contract exists

Question 4

What is a key similarity between proprietary and promissory estoppel?

Answer 4

Both doctrines require the claimant to have relied on a representation or promise to their detriment

Question 5

What are the 4 key elements of promissory estoppel?

Answer 5

1. A clear and unambiguous promise: The promise made must be clear
2. Reliance: The promisee relies on the promise
3. Detriment: The promisee suffers detriment due to reliance
4. Injustice or Unfairness: It would be unjust for the promisor to break the promise

Question 6

Can proprietary estoppel be used in commercial contracts?

Answer 6

No, proprietary estoppel is typically used in relation to property and land disputes, not in commercial contracts, as it concerns rights or claims to land that were assumed or induced

Question 7

What are the 3 key principles of Promissory Estoppel?

Answer 7

1) Foundation - if it would be unjust to go back on a clear and unequivocal promise

2) Requirements are met (clear promise, reliance, detriment)

3) Shield not sword (can only be used as a defence not as action)

Question 8

What are 3 limitations of promissory estoppel?

Answer 8

1. Temporary suspension - does not extinguish rights, only suspends temporarily
2. Reliance must be proven - must demonstrate they changed their position/ acted differently based on the promise
3. Only to prevent unconscionability - only applies where retracting the promise would be unfair