Promissory Estoppel, Privity & Contractual Interpretation Flashcards
Representor:
a)
b)
c)
Representor
a) makes a clear representation
b) by words or conduct
c) regarding past/present/future [that he will not enforce his contractual rights
Representee
a)
b)
Representee
a) relies on the statement
b) behaves equitably (no coercion)
Simple Debt
Extinguished (lump sums of money)
Ongoing debt
Can be revived on notice
Hughes v Metropolitan Railway (1876)
Hughes was a tenant of a railway
There was a repair clause in the lease (to be done within 6 months)
They made an agreement to pause the repairs term whilst they were in negotiations to sell the station
When negotiations fell through, the owner terminated the contract having no regard to the break
The obligation had been estopped
CLPT High Trees House (1947)
High Trees House were the main tenants
During the WW2 many sub tenants moved away
Landlord agreed to reduce the rent
Lord Denning - The higher rent can be reintroduced after reasonable notice
Cannot claim past money back (retrospectively)
D + C Builders v Rees (1966)
A party cannot be coerced into promissory estoppel
D + C Builders reluctantly agreed to lesser payment after continued refusal to pay the higher price
Lord Denning ‘No person can insist on a settlement procured by intimidation’
Collier v P + MJ Wright (2007)
Collier and partners had joint responsibility to pay debt
One partner accepted 1/3 of the debt from Collier
The other partners were bust; they sought more debt from Collier
They were estopped
Arden LJ - Debt had been estinguished
Combe v Combe (1951)
“Shield not a sword”
Wife tried to enforce her maintenance payments through promissory estoppel
This was rejected
Baird v M+S
“Shield not a sword” case
Failed to use promissory estoppel to sue M&S for their short notice termination
