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Contracts - week 6Estoppel Estoppel The law isnt justice. Its a very imperfect mechanism. If you press exactly the right buttons and are also lucky, justice may show up in the answer. A mechanism is all the law was ever intended to be. - Raymond Chandler Estoppel The word estoppel comes from the old French word ‘estoupail’, meaning a plug or stopper. Common law is an older form of estoppel, and its operation is more consistent with the origin of the word. The estoppel stops up the mouth of the representor, preventing him or her from pleading the truth. Estoppel a party makes a statement, representation, promise or fosters an assumption; the other party relies to his or her detriment on the statement, representation, promise or assumption; and the first party wishes to act contrary to the statement, representation, promise or assumption, and this would be unconscionable in the circumstances. N Seddon and M Ellinghausen, Cheshire and Fifoot’s Law of Contract, (8th Edition, 2002) 62 Estoppel Central London Property Trust v High Trees The landlord made a promise not to insist on being paid the full amount of rent for the duration of the war. The tenant relied on that promise. They could have moved into cheaper premises, or closed down altogether. They arranged their financial affairs on the assumption that the landlord would not enforce his legal right to the full amount of rent. In the case, the landlord didn’t try to resile from his promise, but if he had tried to do so, then the estoppel would have arisen. Types of Estoppel Common law (aka estoppel in pais, estoppel by representation) Equitable Proprietory Estoppel Promissory Estoppel Common Law Estoppel party A leads party B to adopt an assumption of fact party B relies on the assumption the reliance means that B will suffer detriment if A subsequently denies the truth of the assumption party A tries to deny the truth of the assumption party A is estopped. Since Jordan v Money - only applies to a represent
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