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Estoppel is a judicial device in common law legal systems whereby a
court A court is any person or institution, often as a government A government is the system or group of people governing an organized community, generally a state State may refer to: Arts, entertainment, and media Literature * ''Sta ...

court
may prevent or "estop" a person from making assertions or from going back on his or her word; the person being sanctioned is "estopped". Estoppel may prevent someone from bringing a particular claim.
Legal doctrine A legal doctrine is a framework, set of rules, Procedural law, procedural steps, or Test (law), test, often established through precedent in the common law, through which judgments can be determined in a given legal case. A doctrine comes about w ...
s of estoppel are based in both
common law In law, common law (also known as judicial precedent or judge-made law, or case law Case law is the collection of past legal decisions written by courts and similar tribunal A tribunal, generally, is any person or institution with authority ...
and
equity Equity may refer to: Finance, accounting and ownership *Equity (finance), ownership of assets that have liabilities attached to them ** Stock, equity based on original contributions of cash or other value to a business ** Home equity, the diffe ...
. It is also a concept in
international law International law, also known as public international law and law of nations, is the set of rules, norms, and standards generally recognized as binding between nation A nation is a community A community is a social unitThe term "level of anal ...
.


Types of estoppel

There are many different types of estoppel which can arise, but the common thread between them is that a person is restrained from asserting a particular position in law where it would be inequitable to do so. By way of illustration: * If a landlord promises the tenant that he will not exercise his right to terminate a lease, and relying upon that promise the tenant spends money improving the premises, the doctrine of ''promissory estoppel'' may prevent the landlord from exercising a right to terminate, even though his promise might not otherwise have been legally binding as a contract. The landlord is precluded from asserting a specific ''right''. * If a person brings legal proceedings in one country claiming that a second person negligently injured them and the courts of that country determine that there was no negligence, then under the doctrine of ''
issue estoppel Estoppel is a judicial device in common law jurisdictions, common law legal systems whereby a court may prevent or "estop" a person from making assertions or from going back on his or her word; the person being sanctioned is "estopped". Estoppel m ...
'' the first person will not normally be able to argue before the courts of another country that the second person was negligent (whether in respect of the same claim or a related claim). The first person is precluded from asserting a specific ''claim''. Estoppel is an equitable doctrine.. Accordingly, any person wishing to assert an estoppel must normally come to the court with "
clean hands Clean hands, sometimes called the clean hands doctrine, unclean hands doctrine, or dirty hands doctrine, is an Defense (legal), equitable defense in which the defendant argues that the plaintiff is not entitled to obtain an equitable remedy becaus ...
". The doctrine of estoppel (which may prevent a party from asserting a right) is often confused with the doctrine of
waiver A waiver is the voluntary wikt:relinquishment, relinquishment or Surrender (law), surrender of some known Rights, right or privilege. Regulatory agencies of state departments or the federal government may issue waivers to exempt companies from ...
(which relates to relinquishing a right once it has arisen). It also substantially overlaps with, but is distinct from, the equitable doctrine of laches.


Etymology and usage

The verb is ''estop'', which comes from
Middle English Middle English (abbreviated to ME) was a form of the English language English is a West Germanic language of the Indo-European language family The Indo-European languages are a language family A language is a structured sys ...
''estoppen'', itself borrowed from
Old French Old French (, , ; Modern French French ( or ) is a Romance language The Romance languages, less commonly Latin or Neo-Latin languages, are the modern languages that evolved from Vulgar Latin Vulgar Latin, also known as Popular o ...
''estop(p)er'', ''estouper'', presumably from
Vulgar Latin Vulgar Latin, also known as Popular or Colloquial Latin, is non-literary Literature broadly is any collection of written Writing is a medium of human communication Communication (from Latin ''communicare'', meaning "to share") is th ...
*''stuppāre.'' 'to stop up with tow, caulk', from
Latin Latin (, or , ) is a classical language belonging to the Italic languages, Italic branch of the Indo-European languages. Latin was originally spoken in the area around Rome, known as Latium. Through the power of the Roman Republic, it became ...

Latin
''stuppa'', 'broken flax', from
Ancient Greek Ancient Greek includes the forms of the Greek language Greek ( el, label=Modern Greek Modern Greek (, , or , ''Kiní Neoellinikí Glóssa''), generally referred to by speakers simply as Greek (, ), refers collectively to the diale ...
''stuppe'', 'broken flax'. The noun form ''estoppel'' is based on the
Old French Old French (, , ; Modern French French ( or ) is a Romance language The Romance languages, less commonly Latin or Neo-Latin languages, are the modern languages that evolved from Vulgar Latin Vulgar Latin, also known as Popular o ...
''estoupail,'' 'stopper, bung', a derivative of ''estouper''. Where a court finds that a party has done something warranting a form of estoppel, that party is said to be estopped from making certain related arguments or claiming certain related rights. The defendant is estopped from presenting the related defense, or the plaintiff is estopped from making the related argument against the defendant.
Lord Coke
Lord Coke
stated, "It is called an estoppel or conclusion, because a man's own act or acceptance stoppeth or closeth up his mouth to allege or plead the truth."


Overview

Estoppel is sometimes said to be a rule of evidence whereby a person is barred from leading evidence of a fact that has already been settled or they are otherwise precluded from asserting, but that may be an oversimplification. Firstly, although some estoppels relate to preventing a party from asserting ''facts'', others relate to preventing a party from asserting a ''right'' or a ''claim''. Secondly, under the
conflict of laws Conflict may refer to: Arts, entertainment, and media Films * Conflict (1936 film), ''Conflict'' (1936 film), an American boxing film starring John Wayne * Conflict (1938 film), ''Conflict'' (1938 film), a French drama film directed by L ...
in common law jurisdictions, matters of evidence are usually treated as procedural matters for the law of the local court (the ''
lex fori ''Lex fori'' (Latin: the law of the forum) is a choice of law rule. If applicable, it provides that the law of the jurisdiction (area), jurisdiction or Venue (law), venue in which a legal action is brought applies. When a court decides that it ...
''), whereas it is generally accepted that an estoppel may affect substantive rights and are therefore matters to be determined by the proper law (or ''
lex causae ''Lex causae'' (Latin for "law of the cause"), in conflict of laws, is the law chosen by the forum court from the relevant legal systems when it judges an international law, international or interjurisdictional legal case, case. It refers to the ...
'') that governs the particular issue. There are many different types of estoppel that can arise under common law legal systems. It has been judicially noted on more than one occasion that the link between them is often somewhat tenuous. ''Treitel on Contracts'' notes that "unconscionability...provides the link between them", but they nevertheless have "separate requirements and different terrains of application". The courts have long abandoned an attempt to create a single general underlying rationale or principle: The plea of estoppel is often closely connected with the plea of
waiver A waiver is the voluntary wikt:relinquishment, relinquishment or Surrender (law), surrender of some known Rights, right or privilege. Regulatory agencies of state departments or the federal government may issue waivers to exempt companies from ...
, the object of both being to ensure
bona fide Good faith ( la, bona fides), in human interactions, is a sincere intention to be fair, open, and honest, regardless of the outcome of the interaction. While some Latin phrases have lost their literal meaning over centuries, this is not the cas ...
s in day-to-day transactions.India -- ''Olga Tellis v. Bombay Municipal Corporation'' (1985.07.10) (Right to Life and Livelihood for Homeless) It is also related to the doctrines of variation and election. It is applied in many areas of contract law, including insurance, banking, and employment. In
English law English law is the common law In law, common law (also known as judicial precedent or judge-made law, or case law) is the body of law created by judges and similar quasi-judicial tribunals by virtue of being stated in written opinions. ''Blac ...
, the concept of
legitimate expectation The doctrine of legitimate expectation was first developed in English law English law is the common law List of national legal systems, legal system of England and Wales, comprising mainly English criminal law, criminal law and Civil law (c ...
in the realm of
administrative law Administrative law is the body of law Law is a system A system is a group of Interaction, interacting or interrelated elements that act according to a set of rules to form a unified whole. A system, surrounded and influenced by ...
and
judicial review Judicial review is a process under which executive Executive may refer to: Role, title, or function * Executive (government), branch of government that has authority and responsibility for the administration of state bureaucracy * Executive, ...
is estoppel's counterpart in
public law Public law is the part of law that governs relations between legal person In law, a legal person is any person or 'thing' (less ambiguously, any legal entity) that can do the things a human person is usually able to do in law – such as en ...
. Promissory estoppel is often applied where there is a promise or an agreement made without consideration. 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". It is most commonly used as a shield, with some commentators stating that it can only be used as a shield, although this varies with jurisdictions.


Examples

Estoppel can be understood by considering examples such as the following: #A city entered into a contract with another party. The contract stated that it had been reviewed by the city's counsel and that the contract was proper. Estoppel applied to estop the city from claiming the contract was invalid. #A
creditor A creditor or lender is a party 300px, '' Hip, Hip, Hurrah!'' (1888) by Peder Severin Krøyer, a painting portraying an artists' party in 19th century Denmark A party is a gathering of people who have been invited by a host A host is ...

creditor
unofficially informs a
debtor A debtor or debitor is a legal entity (legal person) that owes a debt Debt is an obligation that requires one party, the debtor A debtor or debitor is a legal entity (legal person) that owes a debt Debt is an obligation that ...
that the creditor forgives the
debt Debt is an obligation that requires one party, the debtor A debtor or debitor is a legal entity (legal person) that owes a debt Debt is an obligation that requires one party, the debtor, to pay money or other agreed-upon value to ...

debt
between them. Even if such forgiveness is not formally documented, the creditor may be estopped from changing its mind and seeking to collect the debt, because that change would be unfair. #A
landlord A landlord is the owner of a house A house is a single-unit residential building A building, or edifice, is a structure with a roof and walls standing more or less permanently in one place, such as a house or factory. Buildings come in a ...
informs a tenant that rent has been reduced, for example, because there was construction or a lapse in utility services. If the tenant relies on this statement in choosing to remain in the premises, the landlord could be estopped from collecting the full rent.


Types

Some types of estoppel under English, Australian, and American laws are as follows:


In civil cases

*Reliance-based estoppels: These involve one party relying on something the other party has done or said. The party who performed/spoke is the one who is estopped. This category is discussed
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. *Estoppel by record: This frequently arises as issue/cause of action estoppel or judicial estoppel where the orders or judgments made in previous legal proceedings prevent the parties from relitigating the same issues or causes of action. *
Estoppel by deed Estoppel is a common law doctrine which, when it applies, prevents a litigant from denying the truth of what was said or done. The doctrine of estoppel by deed (also known as after-acquired title) is a particular estoppel doctrine in the context of ...
: Situations where rules of
evidence Evidence for a proposition In logic and linguistics, a proposition is the meaning of a declarative sentence (linguistics), sentence. In philosophy, "Meaning (philosophy), meaning" is understood to be a non-linguistic entity which is shared by a ...
prevent a litigant from denying the truth of what was said or done. *Estoppel by silence or
acquiescence In law, acquiescence occurs when a person knowingly stands by without raising any objection to the infringement of his or her rights, while someone else unknowingly and without malice aforethought Malice aforethought is the "premeditation" or "pr ...
: Estoppel that prevents a person from asserting something when he had the right and opportunity to do so earlier, and such silence put another person at a disadvantage. * Laches: Estoppel after a litigant deliberately and avoidably delays an action so as to disadvantage an adversary.


In American criminal cases

*Entrapment by estoppel: In American criminal law, although " ignorance of the law is no excuse" is a principle which generally holds for traditional (older
common law In law, common law (also known as judicial precedent or judge-made law, or case law Case law is the collection of past legal decisions written by courts and similar tribunal A tribunal, generally, is any person or institution with authority ...
) crimes, courts sometimes allow this
excuse In jurisprudence Jurisprudence, or legal theory, is the theoretical study of the propriety of law Law is a system A system is a group of Interaction, interacting or interrelated elements that act according to a set of rules to for ...

excuse
as a defense, when defendant can show they reasonably relied on an interpretation of the law by the public official(s) charged with enforcement or interpretation of that law, such as a regulatory official (even if that official's interpretation is later determined to be wrong). Commonwealth v. Twitchell, Supreme Judicial Court of Massachusetts, 416 Mass. 114, 617 N. E.2d (1993); Wilkins, Justice The defense is based on "
fairness Fairness or being fair can refer to: * Justice * The character in the award-nominated musical comedy ''A Theory of Justice: The Musical!, A Theory of Justice: The Musical.'' * Equity (law), a legal principle allowing for the use of discretion a ...
" principles in the Fifth Amendment. It generally involves determination of fact, not of law, except as to determination of whether the interpreting government official had the legal status asserted by the defense.


Reliance-based estoppels

Reliance-based estoppels (at English law) include: *by representation of fact, where one person asserts the truth of a set of facts to another; *promissory estoppel, where one person makes a promise to another, but there is no enforceable contract; and *proprietary estoppel, where the parties are litigating the title to land. Both ''Halsbury's'' and Spencer Bower (see below) describe these three estoppels collectively as estoppels by representation. More simply, one party must say or do something and see the other party rely on what is said or done to change behavior. All reliance-based estoppels require the victimised party to show both ''inducement'' and ''detrimental reliance'', i.e.: * there must be evidence to show that the representor actually intended the victim to act on the representation or promise, or * the victim must satisfy the court that it was reasonable for him or her to act on the relevant representation or promise, and * what the victim did must either have been reasonable, or * the victim did what the representor intended, and * the victim would suffer a loss or ''detriment'' if the representor was allowed to deny what was said or done—detriment is measured at the time when the representor proposes to deny the representation or withdraw the promise, not at the time when either was made, and * in all the circumstances, the behavior of the representor is such that it would be "unconscionable" to allow him or her to resile. Simply put, promissory estoppel has four necessary elements which the plaintiff must prove: * there was a promise * that was reasonably relied upon * resulting legal detriment to the promisee * justice requires enforcement of the promise Estoppel by representation of fact and promissory estoppel are mutually exclusive: the former is based on a representation of existing fact (or of mixed fact and law), while the latter is based on a promise not to enforce some pre-existing right (i.e. it expresses an intention as to the future). A promissory estoppel operates only between parties who, at the time of the representation, were in an existing relationship, while this is not a requirement for estoppel by representation of fact. The test for
unconscionability Unconscionability (sometimes known as unconscionable dealing/conduct in Australia) is a doctrine in contract law that describes terms that are so extremely unjust, or overwhelmingly one-sided in favor of the party who has the superior bargaining po ...
in the English and Australian courts takes many factors into account, including the behavior, state of mind and circumstances of the parties. Generally, the following eight factors are determinative: *how the promise/representation and reliance upon it were induced; *the content of the promise/representation; *the relative knowledge of the parties; *the parties' relative interest in the relevant activities in reliance; *the nature and context of the parties' relationship; *the parties' relative strength of position; *the history of the parties' relationship; and *the steps, if any, taken by the promisor/representor to ensure he has not caused preventable harm. But in ''Cobbe v Yeoman's Row'',''Cobbe v Yeoman's Row''
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UKHL 55
Lord Scott of Foscote stated the following:


England and Wales


Estoppel by representation of fact

In English law, estoppel by representation of fact is a term coined by Spencer Bower. This species of estoppel is also referred to as "common law estoppel by representation" in ''Halsbury's Laws of England'', vol 16(2), 2003 reissue. Spencer Bower defines estoppel by representation of fact as follows: A second definition comes from Sean Wilken and Theresa Villiers: A representation can be made by words or conduct. Although the representation must be clear and unambiguous, a representation can be inferred from silence where there is a duty to speak or from negligence where a duty of care has arisen. Under English law, estoppel by representation of fact usually acts as a defence, though it may act in support of a cause of action or counterclaim.


Equitable estoppel

Under English and Australian legal systems, ''estoppels in
equity Equity may refer to: Finance, accounting and ownership *Equity (finance), ownership of assets that have liabilities attached to them ** Stock, equity based on original contributions of cash or other value to a business ** Home equity, the diffe ...
'' include promissory and proprietary estoppels, described below. (Contrast with estoppel by representation, which is a claim (under the English system) at law.)


= Proprietary estoppel

= In English law, ''proprietary estoppel'' is distinct from promissory estoppel. ''Proprietary estoppel'' is not a concept in American law, but a similar result is often reached under the general doctrine of promissory estoppel. Traditionally, ''proprietary estoppel'' arose in relation to rights to use the land of the owner, and possibly in connection with disputed transfers of ownership. Although proprietary estoppel was only traditionally available in disputes affecting title to real property, it has now gained limited acceptance in other areas of law. Proprietary estoppel is closely related to the doctrine of constructive trust. Fry J summarized the five elements for proprietary estoppel as: * the claimant ** made a mistake as to his legal rights (typically because the actual owner attempted to convey the property, but the transfer is invalid or ineffective for some reason); ** did some act of reliance; * the defendant ** knows of the existence of a legal right which he (the defendant) possesses, and which is inconsistent with the right claimed by the claimant; ** knows of the claimant's mistaken belief; and ** encouraged the claimant in his act of reliance. Example: A father promised a house to his son who took possession and spent a large sum of money improving the property, but the father never actually transferred the house to the son. Upon the father's death, the son claimed to be the equitable owner. The court found the testamentary trustees (as representatives of the deceased father's estate) were ''estopped'' from denying the son's proprietary interest, and ordered them to convey the land to the son.


= Promissory estoppel

= The
doctrine Doctrine (from la, Wikt:doctrina, doctrina, meaning "teaching, instruction") is a codification (law), codification of beliefs or a body of teacher, teachings or instructions, taught Value (personal and cultural), principles or positions, as the e ...

doctrine
of ''promissory estoppel'' prevents one party from withdrawing a promise made to a second party if the latter has reasonably relied on that promise. A promise made without
consideration Consideration is a concept of English law, English common law and is a necessity for simple contracts but not for special contracts (contracts by deed). The concept has been adopted by other common law jurisdictions. The court in ''Currie v Mis ...
is generally not enforceable. It is known as a bare or gratuitous promise. Thus, if a car salesman promises a potential buyer not to sell a certain car over the weekend, but does so, the promise cannot be enforced. But should the car salesman accept from the potential buyer even one penny in consideration for the promise, the promise will be enforceable in court by the potential buyer. Estoppel extends the court's purview even to cases where there is no consideration, though it is generally not a 'sword': not a basis on which to initiate a lawsuit. In English jurisprudence, the doctrine of ''promissory estoppel'' was first developed in '' Hughes v. Metropolitan Railway Co''
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but was lost for some time until it was resurrected by Denning J in the controversial case of ''
Central London Property Trust Ltd v High Trees House Ltd ''Central London Property Trust Ltd v High Trees House Ltd'' 947KB 130 is a famous English contract law English contract law is a body of law regulating contracts in England and Wales. With its roots in the lex mercatoria and the activism of ...
''.''
Central London Property Trust Ltd v High Trees House Ltd ''Central London Property Trust Ltd v High Trees House Ltd'' 947KB 130 is a famous English contract law English contract law is a body of law regulating contracts in England and Wales. With its roots in the lex mercatoria and the activism of ...
''
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KB 130.
Promissory estoppel requires: #an unequivocal promise by words or conduct #evidence that there is a change in position of the promisee as a result of the promise (reliance but ''not necessarily to their detriment'') #inequity if the promisor were to go back on the promise In general, estoppel is "a shield not a sword"—it cannot be used as the basis of an action on its own.''
Combe v Combe ''Combe v Combe'' 9512 KB 215 is a famous English contract law case on promissory estoppel. An ex-wife tried to take advantage of the principle that had been reintroduced in the High Trees case to enforce her husband's promise to give her main ...
'' (1951) 2 KB 215
It also does not extinguish rights. In ''High Trees'' the plaintiff company was able to restore payment of full rent from early 1945, and could have restored the full rent at any time after the initial promise was made provided a suitable period of notice had been given. In this case, the estoppel was applied to a "negative promise", that is, one where a party promises not to enforce full rights. Estoppel is an equitable (as opposed to common law) construct and its application is therefore discretionary. In the case of '' D & C Builders v. Rees'' the courts refused to recognise a promise to accept a part payment of £300 on a debt of £482 on the basis that it was extracted by duress. In '' Combe v. Combe'' Denning elaborated on the equitable nature of estoppel by refusing to allow its use as a "sword" by an ex-wife to extract funds from the destitute husband. The general rule is that when one party agrees to accept a lesser sum in full payment of a debt, the debtor has given no consideration, and so the creditor is still entitled to claim the debt in its entirety. This is not the case if the debtor offers payment at an earlier date than was previously agreed, because the benefit to the creditor of receiving payment early can be thought of as consideration for the promise to waive the rest of the debt. This is the rule formulated in ''
Pinnel's Case ''Pinnel's Case'' 6025 Co. Rep. 117a, also known as ''Penny v Cole'', is an important case in English English usually refers to: * English language English is a West Germanic languages, West Germanic language first spoken in History of A ...
'', and affirmed in ''
Foakes v Beer is an English contract law English contract law is the body of law that regulates legally binding agreements in England and Wales England and Wales () is a legal jurisdiction covering England and Wales, two of the four countries of the Unite ...
''. The decision of the Court of Appeal in ''
Collier v P & MJ Wright (Holdings) Ltd is an English contract law English contract law is a body of law regulating contracts in England and Wales. With its roots in the lex mercatoria and the activism of the judiciary during the industrial revolution, it shares a heritage with count ...
'' suggests that the doctrine of promissory estoppel can now operate to mitigate the harshness of this common law rule. Moreover,
Arden LJ Mary Howarth Arden, Baroness Mance, (born 23 January 1947), known professionally as Lady Arden of Heswall, is an English judge. She is currently a Justice of the Supreme Court of the United Kingdom. Before that, she was a judge of the Court o ...
held that allowing a creditor to renege on his promise to forebear seeking the balance of a debt in return for part payment would be, in and of itself, inequitable. Therefore, the only reliance that the promisee must demonstrate is the actual making of the part payment. This approach has been criticised as doing violence to the principle set down in Hughes and the extent to which the other members of the Court, namely Longmore LJ, agreed with it is uncertain.


United States


Equitable estoppel

Equitable estoppel is the American counterpart to estoppel by representation. Its elements are summarized as: *Facts misrepresented or concealed *Knowledge of true facts *Fraudulent intent *Inducement and reliance *Injury to complainant *Clear, concise, unequivocal proof of actus (not by implication) For example, in ''Aspex Eyewear v. Clariti Eyewear'', eyeglass frame maker Aspex sued competitor Clariti for patent infringement. Aspex waited three years, without responding to a request that it list the infringed patent claims, before asserting its patent in litigation. During this period, Clariti expanded its marketing and sales of the products. The
Federal Circuit Federal or foederal (archaic) may refer to: Politics General *Federal monarchy A federal monarchy, in the strict sense, is a federation of Federated state, states with a single monarch as overall head of the federation, but retaining different ...
found that Aspex misled Clariti to believe it would not enforce its patent, and thus estopped Aspex from proceeding with the suit. Another example of equitable estoppel is the case of
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Sakharam Ganesh Pandit
, an Indian emigrant and lawyer who was granted American citizenship in 1914 due to his designation as "white." Subsequently, Pandit bought property, was admitted to the California bar, married a white woman, and renounced his rights to property and inheritance in
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British India
. Following the Supreme Court case ''United States v. Thind'', which found that Indians were considered non-white, and in which Pandit represented the applicant,
Bhagat Singh Thind Bhagat Singh Thind (October 3, 1892 – September 15, 1967) was an Indian American writer and lecturer on spirituality The meaning of spirituality has developed and expanded over time, and various connotations can be found alongside eac ...
, the US government moved to strip Pandit of his "illegally procured" citizenship. Pandit successfully challenged the
denaturalization Denaturalization or citizenship deprivation or citizenship revocation is an involuntary loss of citizenship Loss of citizenship, also referred to as loss of nationality, is the event of ceasing to be a citizen Citizenship is a relationship bet ...
, arguing that under equitable estoppel, he would be unjustly harmed by losing his citizenship, as it would cause him to become stateless, lose his profession as a lawyer, and make his marriage illegal. In ''U.S. v. Pandit'', the U.S. Court of Appeals for the Ninth Circuit upheld Pandit's citizenship, ending denaturalization processes against him and other Indian-Americans.


Promissory estoppel

In many jurisdictions of the United States, ''promissory estoppel'' is an alternative to
consideration Consideration is a concept of English law, English common law and is a necessity for simple contracts but not for special contracts (contracts by deed). The concept has been adopted by other common law jurisdictions. The court in ''Currie v Mis ...
as a basis for enforcing a promise. It is also sometimes called ''detrimental reliance.'' The
American Law Institute The American Law Institute (ALI) is a research Research is "creative and systematic work undertaken to increase the stock of knowledge". It involves the collection, organization and analysis of information to increase understanding of a ...
in 1932 included the principle of estoppel into § 90 of the
Restatement of ContractsThe Restatement (Second) of the Law of Contracts is a legal treatise from the second series of the Restatements of the Law, and seeks to inform judges and lawyers about general principles of contract common law. It is one of the best-recognized and f ...
, stating: However: Suppose that B goes to a store and sees a sign that the price of a radio is $10. B tells the shopkeeper that he will get the money and come back later that day to purchase it; there is no discussion of price. The shopkeeper says that when B returns, he will welcome B as a customer—unless he sells all three of his radios first. Hearing this, B goes and sells his watch for $10 (it was really worth $15, but since B wanted the money right away, he chose not to wait for the best price). When B returns, the sign says $11, and the owner tells B that he has raised the price. In equity, can you argue that the shopkeeper is estopped by conduct? B relied upon the implied representation that a radio would be sold for $10 when he returned with the money; B has sold his watch at a discount, to his detriment. (This element would be absent if B sold the watch at the market price.) But the shopkeeper did not guarantee to hold one of the radios against the possibility of B's return nor did they agree a fixed price. In some common-law jurisdictions, a promise by the shopkeeper to hold a specific radio would create a binding contract, even if B had to go for the money. A ''promise'' to pay the owner in the future is good consideration if it is made in exchange for a promise to sell a specific radio (one from three is probably sufficiently specific): one promise in exchange for a second promise creates equal value. So the shopkeeper's actual words and knowledge are critical to deciding whether either a contract or an estoppel arises. The drafters of the Second Restatement debated how to calculate the amount of damages flowing from a promissory estoppel, using the following example: A young man's uncle promises to give him $1,000 to buy a car. The young man buys a car for $500, but the uncle refuses to pay any money. Is the young man entitled to $1,000 (the amount promised), or merely $500 (the amount he actually lost)? The Restatement states that "The remedy granted for breach may be limited as justice requires."—leaving quantification to the discretion of the court.


Other estoppels


Pais

''Estoppel in pais'' (literally "by act of notoriety", or "solemn formal act") is the historical root of common law estoppel by representation and equitable estoppel. The terms ''Estoppel in pais'' and equitable estoppel are used interchangeably in American law.


Convention

''Estoppel by convention'' in English law (also known as ''estoppel by agreement'') occurs where two parties negotiate or operate a contract but make a mistake. If they share an assumption, belief, or understanding of the contract's interpretation or legal effect, then they are bound by it, if: #They both knew the other had the same belief, and #They both based their subsequent dealings on those beliefs. Estoppel by convention is most commonly invoked if one party wishes to rely on pre-contract negotiation as an aid to construction of the contract. It is debatable whether ''estoppel by convention'' is a separate estoppel doctrine, or merely a case of ''reliance-based estoppel'' (''estoppel by representation'' would be its most frequent form), or of the rule of interpretation that, where words in a contract are ambiguous, one always interprets those words so as to give effect to the actual intentions of the parties even if that would not be the usual legal outcome (see ''Amalgamated Investment and Property Co. Ltd. v Texas Commerce International Bank Ltd''
982 Year 982 ( CMLXXXII) was a common year starting on Sunday A common year starting on Sunday is any non-leap year A leap year (also known as an intercalary year or wikt:bissextile, bissextile year) is a calendar year that contains an addition ...
QB 84).


Acquiescence

''Estoppel by
acquiescence In law, acquiescence occurs when a person knowingly stands by without raising any objection to the infringement of his or her rights, while someone else unknowingly and without malice aforethought Malice aforethought is the "premeditation" or "pr ...
'' may arise when one person gives a legal warning to another based on some clearly asserted facts or legal principle, and the other does not respond within "a reasonable period of time". By ''acquiescing'', the other person is generally considered to have lost the legal right to assert the contrary. As an example, suppose that Jill has been storing her car on Jack's land with no contract between them. Jack sends a registered letter to Jill's legal address, stating: "I am no longer willing to allow your car to stay here for free. Please come get your car, or make arrangements to pay me rent for storing it. If you do not do so, within 30 days, I will consider the car abandoned and will claim ownership of it. If you need more time to make arrangements, please contact me within 30 days, and we can work something out." If Jill does not respond, she may be said to have ''relinquished'' her ownership of the car, and ''estoppel by acquiescence'' may prevent any court from invalidating Jack's actions of registering the car in his name and using it as his own.


Contractual

The law relating to contractual estoppel (in English law) was summarised in :


Deed

''Estoppel by deed'' is a rule of evidence arising from the status of a —such agreements, called deeds, are more strictly enforced than ordinary contracts and the parties are expected to take greater care to verify the contents before signing them. Hence, once signed, all statements of fact (usually found in the opening recital which sets out the reason(s) for making the deed) are conclusive evidence against the parties who are estopped from asserting otherwise.


Conflict estoppel

" e who by his speech or conduct has induced another to act in a particular manner ought not be permitted to adopt an inconsistent position, attitude or course of conduct may not be adopted to loss or injury of another". For example, as between two or more claimants, a party that takes multiple and inconsistent legal positions is estopped to assert its positions against another consistent and certain claim, i.e. preferential treatment for certain over uncertain claims.


Issue estoppel

Issue estoppel (more commonly known as issue preclusion) prevents, in some cases, an issue that has already been litigated and decided on the merits from being re-litigated, even when the parties are different. In the world of crime, some cases have achieved notoriety, e.g. in the
Birmingham Six The Birmingham Six were six Irishmen: Hugh Callaghan, Patrick Joseph Hill, Gerard Hunter, Richard McIlkenny, William Power and John Walker, who, in 1975, were each sentenced to life imprisonment following their Miscarriage of justice, false conv ...
saga, the
House of Lords The House of Lords, formally The Right Honourable the Lords Spiritual and Temporal of the United Kingdom of Great Britain and Northern Ireland in Parliament assembled, is the of the . Membership is by , or . Like the , it meets in the . ar ...
ruled in ''Hunter v Chief Constable of the West Midlands Police (1982)'' that ''issue estoppel'' applied.
Lord Diplock William John Kenneth Diplock, Baron Diplock, (8 December 1907 – 14 October 1985) was a British judge and successively a Justice of the High Court in England and Wales and a Lord Justice of Appeal before being created a Law Lord. Early life ...
said: A variant of issue estoppel also precludes a party from bringing a claim in subsequent proceedings which ought properly to have been brought as part of earlier legal proceedings.


In other countries


Australia

The doctrine of promissory estoppel was adopted into
Australia Australia, officially the Commonwealth of Australia, is a Sovereign state, sovereign country comprising the mainland of the Australia (continent), Australian continent, the island of Tasmania, and numerous List of islands of Australia, sma ...

Australia
n law in '' Legione v Hateley''. However, the plaintiffs were unsuccessful in that case because the reliance was unreasonable and the promise not unequivocal. Australian law has now gone beyond the position espoused in the English ''High Trees'' case, to cases where there is no pre-existing legal relationship between the two parties, and promissory estoppel can be wielded as a "sword", not just as a "shield". Mason CJ and Wilson J in ''
Waltons Stores (Interstate) Ltd v Maher ''Waltons Stores (Interstate) Ltd v Maher'',. is a leading case in Australian contract law. The Australian High Court decided that estoppel, in certain circumstances could be a cause of action. Facts Maher owned some property with buildings on it ...
'' held that if estoppel is proven, it gives rise to an equity in favour of the plaintiff, and the court will do the minimum equity that is just in the circumstances. From this case, it is also possible for the promise to come from silence or inaction. Stated by Brennan J in ''Waltons Stores'': Although there is some debate as to whether "unconscionability" is an element that English courts need to take into account when considering estoppel by representation of fact, the Australian courts clearly do.. This element is satisfied if one party encourages the other party to create assumptions that lead to reliance.. Today, the principle of estoppel may give birth to an enforceable obligation even without a consideration under the following conditions: # promise # dishonest behaviour of the promisor # special relationship between the promisor and the promisee,. (e.g., duty of information); # irreversible change of position on the part of the promisee When enforcing an estoppel, Australian courts will look to the impact that enforcement will have on others, especially third parties. Relief in estoppel thus remains discretionary, and will not always be granted based on the expectation of the plaintiff.. The status of estoppel by representation of fact is less clear in Australia. Two seminal decisions purport to fuse common law and equitable estoppels into a single unified doctrine, but the New South Wales Court of Appeal continues to treat estoppel by representation at common law as distinct from equitable estoppel. This can be significant in deciding which court has jurisdiction to adjudicate on the issue. Whilst there also exists a doctrine of proprietary estoppel, the High Court of Australia merged this doctrine with the doctrine of promissory estoppel by virtue of their similar criteria. Nonetheless, authority for the doctrine of proprietary estoppel indicates that if a landlord allows a licensee to expend money on the land under an expectation created or encouraged by the landlord that he/she will be able to remain there, and the licensee suffers a detriment in relying on that expectation, an equity arises in the licensee such as to entitle him/her to stay. Where a proprietary estoppel is found to exist, the court does not have to grant the plaintiff a proprietary interest in the land subject to the dispute. It may instead make an order that the plaintiff receive equitable compensation.


India

Section 115 of the
Indian Evidence Act The Indian Evidence Act, originally passed in India India (Hindi: ), officially the Republic of India (Hindi: ), is a country in South Asia. It is the List of countries and dependencies by population, second-most populous country, the Lis ...
defines estoppel: "When one person has, by his declaration, act or omission, intentionally caused or permitted another person to believe a thing to be true and to act upon such belief, neither he nor his representative shall be allowed, in any suit or proceeding between himself and such person or his representative, to deny the truth of that thing." So, for instance, if A intentionally and falsely leads B to believe that certain land belongs to A, and thereby induces B to buy and pay for it, and only later does A acquire the land, then A is not allowed to argue to void the sale on the ground that, at the time of the sale, he had no title. The doctrine of estoppel is based on the principle that consistency in word and action imparts certainty and honesty to human affairs. If a person makes a representation to another, on the faith of which the latter acts, to his prejudice, the former cannot recant the representation. However, estoppel has no application to representations made regarding the fundamental rights conferred by the
Constitution of India The Constitution of India (IAST The International Alphabet of Sanskrit Transliteration (IAST) is a transliteration scheme that allows the lossless romanisation Romanization or romanisation, in linguistics Linguistics is the sci ...

Constitution of India
, the source of all laws, which exists not only to benefit individuals but to secure collective rights. Thus, no one can barter away the freedoms conferred upon him by the Constitution. A concession made by him in a proceeding, whether under a
mistake of law Mistake of law is a legal principle referring to one or more errors that were made by a person in understanding how the applicable law applied to their past activity that is under analysis by a court. In jurisdictions that use the term, it is dif ...
or otherwise, that he does not possess or will not enforce any particular fundamental right, cannot estop him, as enforcing estoppel would defeat the purpose of the Constitution.


See also

*
Acquiescence In law, acquiescence occurs when a person knowingly stands by without raising any objection to the infringement of his or her rights, while someone else unknowingly and without malice aforethought Malice aforethought is the "premeditation" or "pr ...
and ''Estoppel by acquiescence'' *
Assignor estoppelThe doctrine of assignor estoppel is a doctrine of United States patent law barring a patent's seller (assignor) from attacking the patent's validity in subsequent patent infringement litigation. The doctrine is based on the doctrine of legal estoppe ...
*
Collateral estoppel Collateral estoppel (CE), known in modern terminology as issue preclusion, is a common law In law, common law (also known as judicial precedent or judge-made law, or case law) is the body of law created by judges and similar quasi-judicial tribuna ...
(US) * De facto corporation and corporation by estoppel (US) *
Direct estoppelThe doctrine of direct estoppel prevents a party (law), party to a litigation from relitigating an issue (legal), issue that was decided against that party in that litigation, under certain circumstances. Specifically, direct estoppel applies where t ...
*
Estoppel by deed Estoppel is a common law doctrine which, when it applies, prevents a litigant from denying the truth of what was said or done. The doctrine of estoppel by deed (also known as after-acquired title) is a particular estoppel doctrine in the context of ...
(US) * Judicial estoppel * Licensee estoppel * '' McDonald v Attorney-General''
Principle of venire contra factum proprium non valet
in legal systems based on
civil law Civil law may refer to: * Civil law (common law) Civil law is a major branch of the law.Glanville Williams. ''Learning the Law''. Eleventh Edition. Stevens. 1982. p. 2. In common law legal systems such as England and Wales and the law of the United ...
* Prosecution history estoppel also known as ''file-wrapper estoppel'' (US)


Notes


External links

{{Wiktionary
Proprietary estoppel

Tenant Estoppel Agreements


Contract law Equity (law) Equitable defenses French legal terminology Legal doctrines and principles