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A Review Of Promissory Estoppel Law
A Review Of Promissory Estoppel Law
A Review Of Promissory Estoppel Law
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Introduction Main Body ~ The doctrine of promissory estoppel was established with the intention of preventing injustice. This may arise in circumstances whereby, party A makes an agreement with party B under contractual legal rights. However, party A may choose to go back on his original agreement as a result, the other party will seek to enforce their strict legal rights. The doctrine originated in Hughes v Metropolitan Railway Co. (1877). In the lease agreement, it required that the lessee to repair by given notice. The landlord gave notice for repair within six months. The tenants were initially inquiring to purchase his premises. The landlord then entered into negotiations along the tenants, whereby he had also agreed that he would not enforce the obligations required, while negotiations take place. Negotiations continued for two months then broke down. Landlord sued for not carrying out repair duties required in the lease. Consistently, House of Lords held that ‘tenants was entitled to equitable relief against forfeiture of the lease on the ground that the running of the six-month period was suspended during negotiations.’ Nevertheless, House of Lords refused to accept the argument, as ‘it was unsupported by consideration therefore, arguably unenforceable.’ This case lead an interest among the likes of Lord Denning, who is acknowledged for the invention of the doctrine of promissory and genuinely putting the doctrine into practice. The doctrine emerged through the case of Central London Property Trust Ltd v High Trees House Ltd (1947). The claimant had let a block of flats in London, on a 99-year lease at the annual rent of £2500. During the 1940s, as a result of outbreak of war and evacuation from London, they were ... ... middle of paper ... ...t of the doctrine to be removed is not expressed, however, there are reference to whereby terms use of ‘limit’ and ‘refine’ which is believed to emphasises on the practical benefit rather than legal. Russel LJ, views the doctrine through occasion technalities, where courts can preven giving effect to the intention of parties. He further adds, that ‘consideration’ is considered as a ‘vititaing factor’ which is a requirement for ‘valid and subsisting contract.’ Russel LJ, does not distinguish the doctrine along with public interest but the formately of it. In contrast, Lord Goff rasies doubts as well, whereby he states, contract is widely seen as deficient’ where the ‘prsence of an unnescessary doctrine of consideration.’ Professor Dawson further supports, this suggests that the argument is based around that consideration ‘draws the net of enforceability too tightly.’
In Palgo Holdings v Gowans , the High Court considered the distinction between a security in the form of a pawn or pledge and a security in the form of a chattel mortgage. The question was whether section 6 of the Pawnbrokers and Second-hand Dealers Act 1996 (NSW) (‘the 1996 Pawnbrokers Act’) extended to a business that structured its loan agreements as chattel mortgages. In a four to one majority (Kirby J dissenting) the High Court found that chattel mortgages fell outside the ambit of section 6 of the 1996 Pawnbrokers Act. However, beyond the apparent simplicity of this decision, the reasoning of the majority raises a number of questions. Was it a “turning back to literalism” as Kirby J suggested, or was it simply a case where the court declares that parliament has missed its target?
The case of Kamloops v. Nielson was a landmark decision for tort law, since it established the duty of care principle in Canadian private law, which prior to this case was used in the Anns v. Merton case and expanded the scope of duty first identified in Donoghue v. Stevenson. In the historic case of Donoghue v. Stevenson, duty of care was established to include anyone that could be foreseeably harmed by someone’s actions, creating the neighbour principle. The Anns v. Merton case expanded the scope of the neighbour principle to including public bodies, such as the municipality. The case involved a faulty building foundation, which resulting in requiring repairs for the house, and whether the municipality should have to pay for the repairs, since it was the job of the municipality to inspect and ensure the building was properly constructed. Whether public tax allocations should be subject to tort litigations was placed in question in the case but the municipality was held liable for damages nevertheless.
A promissory estoppel is present if one party makes a promise to the other knowing that the other will rely on it. If the other party relies on it, there would be an injustice if the promise was not enforced. In the case of Sam and the chain store, unless the chain store had already paid him and/or spent money in anticipation of the arrival of the 1000 units, promissory estoppel would not be present since they did not rely on Sam’s promise. However, since the text reads that the chain store wrote a letter to Sam demanding that the 1000 units be sent, it implies that they had relied upon that
If a breach of contract is both material and opportunistic, the injured promisee has a claim in restitution to the profit realized by the defaulting promisor as a result of the breach. Liability in restitution with disgorgement of profit is an alternative to liability for contract damages measured by injury to the promisee.
well-established principles of contract interpretation, the Court finds the exception for "third-party fees" and "fees, fines, and penalties" was not intended to apply to
Having evaluated the current state of English contract law, mainly made up of piecemeal solutions, it can be seen that despite being satisfactory and doing its job, there still remain gaps within the law of contract where unfairness is not dealt with. Moreover, due to the ad hoc nature of those piecemeal solutions, the latter have often produced inconsistent justice and have manifested cases of unfairness. Hence, “a relatively small number of respected Justices have endeavored to draw attention to the fact that the application of a general principle might be useful and even necessary in English law.”
Lord Denning described estoppel succinctly as ‘a principle of justice and equity. It comes to this: when a man, by his words or conduct, has led another to believe in a particular state of affairs, he will not be allowed to go back on it when it would be unjust or inequitable for him to do so’ . Proprietary estoppel in turn is an informal method by which proprietary rights can arise. It can provide a defence to an action by a landowner who seeks to enforce his strict rights against someone who has been informally promised some right or liberty over the land. In turn it can be used as a defence or a cause of action. In order to show how the two doctrines are quite similar, a description of the elements of proprie...
Based on common law and precedent, the English law of contract has been formulated and developed over a number of years with it’s primary purpose to provide a regulated framework within which individuals can contract freely. In order to ensure a contract is enforceable there are certain elements which must be satisfied, one of which is the doctrine of consideration. Lord Denning famously professed; “the doctrine of consideration is too firmly fixed to be overthrown by a side wind” . This is a crucial indication that consideration has long been regarded as the cardinal ‘badge of enforceability’ in the formulation and variation of contracts in English common law.
part of the Doctrine Hedley Byrne and Co. Ltd V Heller and. Partners Ltd (1964), Rondel V Worsley (1969).
The principle then lies about like a loaded weapon, ready for the hand of any authority that can bring forward a plausible claim of an urgent need. Every repetition imbeds that principle more deeply in our law and thinking and expands it to new purposes.
In the case of Yaxley v Gotts (2000) ch 162, the defendant, Gotts bought a building to Yaxley, a self employed builder and instead agreed him to have the bottom floor for renovating the other flats. Later, Yaxley argued that an oral statement had been made between them to reward him with ownership of the ground floor of the building, which Gotts failed to convey the title deeds in the name of Yaxley. The judge later found an oral contract had been made and permitted Yaxley, the plaintiff, to have the ownership in the form of a 99-year lease. The appeal court stated that the doctrine of estoppel should operate to modify the effect of the section 2 of the 1989 Act.
In Krell v. Henry {1903} a plea of frustration succeeded because the court held that the common purpose for which the contact was entered into, could no longer be carried out. But in the same year for similar set of facts, the Court of Appeal decided in Herne Bay v. Hutton [1903] that the contract had not been frustrated because the "common formation of the contract" had not changed. It clearly was a policy decision which shows the reluctance of the courts to provide an escape route for a party for whom the contract ha...
This essay will examine the doctrine of Judicial precedent that helps form the English Legal System. It will illustrate various views that have been raised by Judges and relating cases to the use of ‘Stare decisis’ when creating precedents. In addition it will discuss how the developments in the powers of the courts now also allow them to depart from these precedents to an extent.
...ntradiction of terms. If the Court finds it unsatisfactory, doesn’t that imply that the Court already believes the authorities are not doing justice? How much “convincing” would they need? Duffy again points out the need for revision in the treaty.
The courts of England and Wales acknowledge that the above must be something of value, in order to amount to consideration. A valuable consideration in the perspective of the English La...