Proprietary Estoppel and Promissory Estoppel (Essay Sample)

Proprietary Estoppel and Promissory Estoppel
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Estoppel is a principle that highlights the ways in which promises may actuate to binding obligations. Estoppel comes from the word, estopped, in common parlance means prevented or precluded. An estoppel is a legal doctrine that prevents one person from denying previous position or state of affairs. The importance of estoppel is the avoidance of denial of a statement to which another party acted upon at that moment. Both equity and Common law envisage the equitable right of estoppel. The paper addresses proprietary and promissory estoppel.
The multiplicity of estoppel principally depends as per the different facts of the case. In The Bell Group Ltd (in liq) v Westpac Banking Corporation (No 9) (2008) 225 FLR 1 at 393, Owen J said: ‘Put in general terms, [estoppel] is a doctrine designed to protect a party from the detriment that would flow from that party’s change of position if the assumption or expectation that led to it were to be rendered groundless by another.’ The concept of estoppel exists in various forms such as estoppel by representation, estoppel by judgment, estoppel by deed, estoppel in pais, proprietary estoppel, estoppel by conduct, proprietary estoppel, High Trees estoppel among others.
Promissory estoppel is an extension of the estoppel by representation. According to Denning J in the High Trees Case (1947), promissory estoppel is the stopping of the detriment incurred by a representee from an ambiguous representation from the promisor. There are two limitations that affect the operation of the doctrine of promissory estoppel. First, the existence of an initial legal relationship between the two parties before the making of the promise (Combe v Combe [1951] 2 KB 215 at 220). The High Trees case sufficiently addressed the limitation since there was a pre-existing landlord-tenant relationship. Secondly, for a suit instigated by the promisor, the doctrine may serve as a defense against the promisee. Promissory estoppel is an equitable relief that curbs the inadequacies in the law of contract due to lack of consideration. Promissory estoppel delves into the variation of the legal rights emanating from the initial relationship between the two parties (Chitty, 2012, 427).
Proprietary estoppel operates both as a shield as well as a sword. According to Chitty (2012), proprietary estoppel operates under the ambit of the law of propriety. The doctrine operates to estop the restriction by landowners regarding legal rights where the landowner actuated the belief in another concerning entitlement to a property. The belief must be acted upon to take effect. The doctrine operates on the notion of acquiescence and inaction than to any action or statement (Chitty, 2012, 428). The Court of equity awards reliefs discretionarily. The award of the court does not exceed the informal promise.
There are five elements to address when invoking proprietary estoppel. Fry LJ in the case of Willmott v Barber (1880) exposits on the elements. First, the claim must arise from the mistake about the legal rights in and over a piece of land. Secondly, the legitimate land proprietor must know the mistaken belief relied on by the claimant....