StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...

Promissory Estoppel - Essay Example

Comments (0) Cite this document
Summary
Daniel Farber and John Matheson (1985) refers to is as the “invisible handshake”, or a promise made in order to further an economic activity. Through this doctrine,…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER92.7% of users find it useful
Promissory Estoppel
Read TextPreview

Extract of sample "Promissory Estoppel"

Download file to see previous pages In this view, promissory estoppel is established as a contractual obligation that will in fact harmonize the often-divergent philosophies adhered to by legal scholars. This article looks at the different circumstances when promissory estoppel is used in the English courts and tries to summarize why the doctrine is an important part of contract law. It also tries to explain why the use of promissory estoppel is being contested. This paper maintains that promissory estoppel is still important in contract law and that instead of declining, it is actually evolving.
Promissory estoppels has three distinct elements: (1) a clear and definite promise, (2) the promise induced action or forbearance, and (3) injustice can only be avoided with the enforcement of the promise (Boyer 1950: 460). The doctrine of promissory estoppels was first expounded in the case of Central London Property Trust Ltd v High Trees House (Denning 1946). In 1937, High Trees House Ltd. leased a block of flats from Central London Property Trust, with the conditions that the rent is worth £2,500 and duration is 95 years. But because London was suffering from war bombings at the time, High Trees may not be able to pay out its lease. To help the company sustain its business and since numerous flats were still unrented, the plaintiffs sent a letter to the defendant confirming the reduction of the rent to £1,250. The defendants continued to pay the reduced rent and by 1945, when all the flats have been rented out, High Trees paid only £1,250. In September 1945, the plaintiff wrote a letter to the defendant collecting the original amount of £2,500 for the entire year starting from September 29 to December 25, 1945. The defendants held that the letters passed on between the parties was evidence of modification in the original contract and that it was equally legally binding to the plaintiff company. Lord Denning ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Promissory Estoppel Essay Example | Topics and Well Written Essays - 1750 words”, n.d.)
Retrieved from https://studentshare.org/miscellaneous/1592530-promissory-estoppel
(Promissory Estoppel Essay Example | Topics and Well Written Essays - 1750 Words)
https://studentshare.org/miscellaneous/1592530-promissory-estoppel.
“Promissory Estoppel Essay Example | Topics and Well Written Essays - 1750 Words”, n.d. https://studentshare.org/miscellaneous/1592530-promissory-estoppel.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Promissory Estoppel

Doctrine of Promissory Estoppel

...Promissory Estoppel and Consideration Consideration and promissory estoppel are key parts of contracts: Consideration is one of the three pillars of contract law in the United Kingdom and most Commonwealth, and promissory estoppel is one of the ways contracts can be meaningfully enforced, by eliminating the ability of contractors to withdraw from the contract. This paper will analyze the doctrines in the specific instance of the following case study. Facts Amelia offered her nephew, Dan, two thousand pounds if he worked hard and got a second class degree, and her sister, Betti, five hundred pounds for errands. She also offered a two hundred fifty pound reduction of a loan she had given to Betti's husband, Giles. Giles pays the seven...
8 Pages(2000 words)Essay

Australian Law: Promissory Estoppel

...…………………………………………………………………………. 3 Promissory estoppel………………………………………………………………….4 Collier v P&M J Wright (Holdings)…………………………………………………5 Collier v P&M J Wright case review………………………………………….……..5 D & C Builders V Rees………………………………………………………………6 D & C Builders V Rees case review…………………………………………………6 Conclusion……………………………………………………………………………7 References……………………………………………………………………………9 Introduction Estoppel in law implies to stop or bar a person from denying matters or truths that he/ she expressly or impliedly stated (Sharma 1994). Promissory estoppel can therefore be defined as legal doctrine that bars a person from making a promise and then withdrawing it at a time...
8 Pages(2000 words)Term Paper

Use of Promissory Estoppel in Business Contracts

...Conclusion 13 References 14 Introduction Promissory Estoppels is a way to enforce a contract without any consideration (Farber & Matheson, 1985). A normal contract consists of three main components – an offer being made, the offer being accepted and a consideration being given for the offer (Klass, 2010). As an example let us suppose that company A signs a contract with company B to supply 50 tons of rice per month for $50/ton for 5 years. However if the grain prices fall during the contract period and B wants to renegotiate the price to $40/ton then under the normal contract law this can be done in 2 ways – either by giving a consideration such as agreeing to pay for the transportation costs or agreeing...
11 Pages(2750 words)Essay

Promissory estoppel

...eover, in the absence of the extra efforts put in by the workers, the Print UK Ltd would not have been in a position to release the book on the agreed upon date. Failure to have released the book would have proved detrimental to the profits of the Print UK Ltd. This undesirable circumstance had been thwarted, solely on account of the extra work put in by its workers. In order to advise the workers whether they can assert their right to obtain the bonus amount from Print UK Ltd, the doctrine of promissory estoppel in contracts has to be examined. Promissory estoppel is an important remedy, provided by the law, to an injured party in a contract. It enables the plaintiff to sue the promisor, if the former acts on the promise of the...
11 Pages(2750 words)Article

The Edge of Land Law Lies Proprietary Estoppel

... equity” giving rise to an equitable property right per se16. Lord Denning further adopted the approach favoured recently by focusing on the concept of detrimental reliance. However, this was arguably confused by referring to both promissory and proprietary estoppel17. Alternatively, Scarman relied upon the Willmott v Barber probanda and as such, the council was estopped from asserting their legal rights. Nevertheless, the divergence in judicial justification for ultimately reaching the same decision clearly begs the question as to whether proprietary estoppel is in fact a doctrine or a patchwork quilt of various ideas applied on a case by case basis. Alternatively, the very nature of proprietary estoppel is clearly rooted...
9 Pages(2250 words)Essay

The Nature of Proprietary Estoppel

... and somewhat inconsistent application of the test has arguably rendered proprietary estoppel a “loose cannon”. For example, in the case of Crabb v Ann District Council18, Lord Denning further adopted the approach favoured recently by focusing on the concept of detrimental reliance. However, this was arguably confused by referring to both promissory and proprietary estoppel19. Alternatively, Lord Scarman relied upon the Willmott v Barber probanda and as such, the council was estopped from asserting their legal rights. Nevertheless, the divergence in judicial justification for ultimately reaching the same decision clearly begs the question as to whether proprietary estoppel is in fact a doctrine or a patchwork quilt of various ideas...
11 Pages(2750 words)Essay

Promissory Estoppel in the Contract of Law

...estoppel is important in the sense that it can be used as a defense by a party to prevent another from turning back from the concession he or she has given and enforce his or her rights against the recipient of the concession. a. Unequivocal Representation In order for promissory estoppel to arise, there must be a clear and unequivocal representation made by the parties that a right will not be enforced against the other. According to the court in the case of Woodhouse Israel Cocoa v Nigerian Produce Marketing Company2, there is a need for the party or the parties making the concession to inform the other party or parties regarding the concession made. The parties must clearly state...
9 Pages(2250 words)Case Study

Doctrine of Consideration and Promissory Estoppel

... promise may make that promise enforceable to such extent as her/his reliance. However, any action under the promissory estoppel doctrine is highly likely to be executed under equity in absence of a jury. It may also fail if the plaintiff cannot demonstrate the element that there will be a result of injustice if the oral promise by the promisor is not enforced. A plaintiff of promissory estoppels doctrine has also to overcome a great deal of hostility by the judiciary to such doctrine. Even if the plaintiff is successful under this, it may not be possible to make a recovery of the whole benefit in which he/she was bargaining.1 (Luepke, 2002) In the period from year 1809 to 1991, common law has made a clear provision that any promise...
8 Pages(2000 words)Case Study

If a creditor promises to accept a smaller su m in full settlement intending the debtor to rely on that promise, and the debt or does rely on it, the debtor may have a defence of promissory estoppel when sued fo r the balance by the creditor. The promise

... mentioned in it. Contract can also be considered as a promise made by one party to the other, wherein each of the parties is liable to enjoy both the benefits as well as detriments associated with the same. However, a promise without a proper consideration amid the parties involved will not be considered to remain enforceable legally. In such scenario, the contract or the promise will only be analysed under the legal tool of promissory estoppel. However, it can be clearly observed that there are exceptional cases wherein contracts have been enforced under law, despite the absence of proper or visible consideration amid the two parties1. Contextually, in order to depict a comprehensive understanding, this paper would analyse a particular...
9 Pages(2250 words)Essay

Problem question on consideration and promissory estoppel

... these parties terminate the contract in case the other party decides to breach the agreement. The court has to determine whether the unwritten promises can form a bidding agreement between the parties. Rule Jubilee should claim the additional £100,000 paid to the contractor BB and request the contractor to complete the contract within the agreed duration of twelve weeks. Similarly, the Voice Over engineer should claim for the remaining balance of £1,000 from the Jubilee Media after completing the contractual obligation. Finally, the two Voice Over specialists should claim their balances of £500 each from the Jubilee Media as stated in the agreement. The court has to determine the extent to which the promissory estoppels apply between...
8 Pages(2000 words)Coursework

Promissory Estoppel

Third, annulling the promise made by the promisor or reneging on the promise would constitute an unjust act1.
The sports industry is lucrative and Adam was a manufacturer of sports clothing. He entered into a verbal contract with Moves Ltd, according to which the latter was to transport three thousand rolls of fabric from Adam’s warehouse located in London to his factor, which was in Cheltenham. One of the principal conditions of this contract was that the Moves Ltd would have to deliver a hundred and fifty rolls of fabric every week to Adam’s Cheltenham factory. This task was to be completed in twenty weeks and the price agreed upon for the completion of this contract was £ 20,000.
However, prior to th...
7 Pages(1750 words)Assignment

Practical Benefit and Promissory Estoppel

...after it has also been able to gain some practical benefit, might be unnecessarily harsh.20 In this case, the doctrine of promissory estoppel may apply, as a law of waiver or giving up one’s rights in the interests of equity, so that when a promise has been made to make additional payments, going back on that promise may not be an acceptable option.21 In the case of Central London Property trust Ltd v High Trees House Ltd, it was held that “a promise intended to be binding, intended to be acted upon, and in fact acted upon……is binding so far as its terms properly apply.”22 The defendants in the UKC case had promised to make additional payments and such promise was intended to be binding, in reliance...
8 Pages(2000 words)Coursework

The Doctrine of Promissory Estoppel in Contract Law

...Trust Limited v High Trees House Limited4 Denning J effectively redefined the doctrine of consideration by importing the doctrine of promissory estoppel into contract. Moreover, the landmark decision in the case of Williams v Roffey Brothers5 clearly added another perspective upon the role of the classic definition of consideration and even went as far as to question its relevance in the modern law of contract. Interestingly, the Williams’ decision suggested that in some instances performance of existing contractual obligations could constitute sufficient consideration in a new agreement, which undermined the traditional view and appears to support the assertion that promissory...
12 Pages(3000 words)Case Study

Equity and Trusts: Proprietary Estoppel

...1. Introduction In order to advise Theodore and Christopher with regard to their rights against Tony’s e it will be necessary to consider theirrights under contract and the legal consequences of the contract being oral. Alternatively it will be necessary to evaluate their rights under the doctrine of proprietary estoppel. 2. The Facts Theodore had intended to purchase another property and Tony advised Theodore to save money and live in the barn as his dwelling. In reliance on this, Theodore spent significant sums in converting the barn and renovations for the purpose of living in it as his dwelling. He has lived there since 2003. Tony and Christopher had reached an oral agreement regarding the right to purchase part of the property...
6 Pages(1500 words)Assignment

What Is the Idea of the Doctrine of Proprietary Estoppel

... dining chairs to Imogen Imogen paid immediately but it was agreed that she would come to collect the furniture later in the year. In January 2009 Fred died; he left a will, dated 1970, under which the sole beneficiary was Jeremy, a distant relation. Introduction In order to be able to advise Grace, Harold and Imogen with regard to any claim they might have to the property of Fred, it is necessary to consider the principle of proprietary estoppel and whether they can claim a beneficial interest in the property. It is also necessary to discuss the effect of the will in order to determine whether the existence of the will is sufficient to prevent them from receiving anything from the estate. There will also need to be a discussion...
14 Pages(3500 words)Case Study
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic Promissory Estoppel for FREE!

Contact Us