Promissory Estoppel Law
Chapter 7: promises supported by estopped * Estoppel: situation where a person is precluded from saying something – namely the denial that a promise has been made. Protects person from the injurious consequence of reliance. * For example : creditor agrees to accept lesser sum in discharge of a greater sum, cant reclaim full payment refer to D & C Builders Ltd v Rees
Estoppel Generally: * Different forms of estoppel: common law estoppel, estoppel in pais, estoppel by representation estoppel by convention…promissory estoppel, proprietary estoppel and equitable estoppel. * Above differences in estoppel not important today - grouped together as a reference to unconscionability. main differences = common law estoppels (based on representations of facts) and equitable (relying on promises or assurances) * Object of estoppel: Dixon J – prevent unjust departure by one person from an assumption adopted by another …unless the assumption be adhered to, would operate to that other’s detriment.
Contrast between object of estoppel & consideration. Consideration – mark off promises as breaches and use remedies. Estoppel aims to prevent unjust departures from justified assumption, substitute for consideration. * Protection of reliance: promises supported by consideration enforced by contracts. Estoppel goes one step further- promise and reliance! Thompson v Palmer Dixon J: departure considered unjust when other party adopting it did it at a disadvangtage – so that departure of the assumption would cause detriment. * Unconscionability and injustice are main elements to estoppel. * Promise does not have to be supported by consideration to be estoppelled. * Estoppel can arise in with (used as a defense) or without pre – existing legal relationship …without legal relationship more controversial – preclude the promisor that no rights arose from the promise. There is no consideration – therefore through estoppel can require rights
Estoppel Generally: * Different forms of estoppel: common law estoppel, estoppel in pais, estoppel by representation estoppel by convention…promissory estoppel, proprietary estoppel and equitable estoppel. * Above differences in estoppel not important today - grouped together as a reference to unconscionability. main differences = common law estoppels (based on representations of facts) and equitable (relying on promises or assurances) * Object of estoppel: Dixon J – prevent unjust departure by one person from an assumption adopted by another …unless the assumption be adhered to, would operate to that other’s detriment.
Contrast between object of estoppel & consideration. Consideration – mark off promises as breaches and use remedies. Estoppel aims to prevent unjust departures from justified assumption, substitute for consideration. * Protection of reliance: promises supported by consideration enforced by contracts. Estoppel goes one step further- promise and reliance! Thompson v Palmer Dixon J: departure considered unjust when other party adopting it did it at a disadvangtage – so that departure of the assumption would cause detriment. * Unconscionability and injustice are main elements to estoppel. * Promise does not have to be supported by consideration to be estoppelled. * Estoppel can arise in with (used as a defense) or without pre – existing legal relationship …without legal relationship more controversial – preclude the promisor that no rights arose from the promise. There is no consideration – therefore through estoppel can require rights