Promissory Estoppel

Promissory Estoppel

1. Central London Property Trust v High Trees House

2. c cannot go back on word when unjust / inequitable to do so

3. 1) a clear and unequivocal promise to suspend or waive existing contractual rights

   • by words / conduct
     • Hughes v Metropolitan Railway
   • must be sufficiently clear
     • Woodhouse Cocao v Nigerian Produce
       • was not clear (currency changes)
       • sterling devalued so wanted payment in Nigerian pounds

4. 2) a change of position by the promisee in reliance on the promise

   • Ajayi v Briscoe
     • no change of position
     • d carried on his business regardless when lorries were faulty
   • Brikom Investments v Carr
     • 'reliance' given a wide interpretation
     • where promisee conducted themself as intended by promisor, burden will be on promisor to establish that promisee's conduct was not induced by promise
   • Collier v P & MJ Wright (Holdings)
     • no need for meaningful idea of reliance?

5. 3) reliance need not be detrimental

   • The Post Chaser

6. 4) must be inequitable for promisor to go back on promise

   • D&C Builders v Rees
     • had not come to equity with clean hands
     • knew that builders were in financial trouble so wouldn't have a choice but to accept her offer of less pay
       • do not discuss duress re accepting less - use equitable maxims

7. 5) shield, not a sword

   • can only be used as a defence, not an action
     • Combe v Combe
       • divorce proceedings husband failed to fulfil promise so wife brought action - not allowed

8. effect of Prom. Es.

   • suspends rights
     • CLP Trust v High Trees
   • rights can be resumed later
     • following reasonable notice
       • Tool Metal v Tungsten Electric
     • when circumstances giving rise to estoppel cease
       • CLP v High Trees
     • money due in instalments
       • c cannot recover money that was waived, can only resume future payments
         • past periodic payments extinguished
         • implies that if money due as lump sum then payment is merely suspended and still owed after the period of estoppel