Promissory estoppel

Promissory Estoppel - investopedia. Is promissory estoppel enforceable? What is the doctrine of promissory estoppel? In order to see that justice is done a court will treat the statement as a promise, and in a trial the judge will preclude the maker of the statement from denying it.

The doctrine that a promise made without the exchange of consideration is binding and enforceable if: The defendant made a clear and unambiguous promise.

In some instances, it can stop a person going back on a promise, which is not supported by consideration. The doctrine of promissory estoppel is an alternative to the doctrine of consideration.

In most cases, one party was harmed or served injustice because of the broken promise that they relied on. When used as a defense by a defendant it is sometimes called a "shield", and when used affirmatively by a plaintiff it is sometimes called a "sword".

Estoppel is something that stops person X from doing something after person Y has relied upon the promise given to them. In English law, a promise made without consideration is generally not enforceable, and is known as a gratuitous promise.

In essence, when someone makes a commitment to someone who goes on to rely on that promise, only to experience some sort of detriment, promissory estoppel may be enforced. Lastly, promissory estoppel is a shield not a sword.

It cannot be used in English law as a cause of action, it can only be used as a defence mechanism to protect someone who may suffer unjust enforcement of strict legal rights. It is a critical tool that courts can use to avoid injustice when the general contract law rules would cause unfair.

The principle is applicable when a promisee relies on the promise made by the promisor and encounters a subsequent detriment as a result of the promise. There are two forms of equitable estoppel – promissory and proprietary. Proprietary Estoppel, and promissory Estoppel, is an equitable remedy and requires the claimant to show:​ An unambiguous promise by words or conduct. That it would be unjust or inequitable to allow the other party to go back on the promise.

Like all equitable remedies, it is discretionary, in contrast to the common law absolute right like right to damages for breach of contract. The doctrine has been variously called ‘ promissory estoppel ’, ‘equitable estoppel’, ‘quasi estoppel’ and ‘new estoppel’. The effect of promissory estoppel.

An offeror is required to perform its promise where it would be unjust not to do so, even though the offeree has not provided consideration. For promissory estoppel to be invoke the offeree must have altered its position, in reliance on an assumption induced by the offeror and the offeree would suffer detriment if the promise is not performed.

It prevents a party from acting in a certain way because the first party promised not to do something, and the second party relied on that promise and acted upon it. It occurs when a party reasonably relies on the promise of another party, and because of the reliance is injured or damaged.

For example, suppose a restaurant agrees to pay a bakery to make pies. The bakery has only two employees.

This doctrine is to the effect that when a party by his word or conduct makes a promise to another party with the intent to be acted upon by that other party and infact acted upon, the promisor will not be allowed to go back on his word.

It is a defense to an assertion of contractual rights where one party has given a promise not to assert his legal right if a condition is fulfilled by the other party and that other party fulfills that condition, the promisor. In common language, " promissory " means "related to a promise," and " estoppel " is a legal term that essentially means an enforced bar or ban.

Judges use the doctrine to ban one person from going back on a promise. If a promise is made to a party and they act upon that promise to their detriment they can make a claim promissory estoppel.

In such situations, English law will often prevent the former party from enforcing the original terms of the contract. The buyers raised promissory estoppel in their defence in that in accepting the instalment in pound sterling and redrafting the credit agreement without changing the currency there was an implied promise that they would not revert to Kenyan Shillings. Collateral Estoppel.

Estoppel is a legal principle that protects one party by holding another to their word or requiring them to adhere to established legal facts. A form of estoppel encountered in contract law is.

Where promissory estoppel is raised as a defence or counter-claim against a creditor seeking full payment after a purported agreement to remit the balance of a debt in exchange for part-payment. This is not to say the two cannot co-exist.