LAW 1503 Lecture 8: Estoppel

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ESTOPPEL
Nature and Types of estoppel
As an alternative to contract
Plead to preclude ('estop') one party from denying the truth of, or acting
inconsistently with, an assumption which the other has been encouraged to adopt
o Stops a party from pleading a legal argument or commencing legal
proceedings that they would have otherwise done
Can be used to enforce promises that might otherwise be unenforceable (eg. Due
to lack of consideration)
But granted at court's discretion
Equitable Estoppel
Distinguish
Common law
Limited to assumptions or
representations as to present fact
(a beef that a contract HAS been
signed)
Jorden v Money (1854) 10 ER 868
Estoppel by convention (parties
agreed to conduct relations in a
particular way); estoppel by
representation (one party leads
another to believe something
untrue)
Equity
Estoppel can be
founded on
representations as to
the future (a belief
that a contract WILL
be signed) (promise)
Riches v Hogben
[1986] 1 Qd R 315
Proprietary (regards
real property-
estoppel by
encouragement;
estoppel by
acquiescence)
(Riches v Hogben-
used to enforce
gratuitous promises to
grant an interest in
land)
Promissory (A leads
B to believe that A will
fulfil a promise)
Ashton v Pratt drew a
sharp distinction
between the two. No
unified doctrine.
Equitable estoppel
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Document Summary

Equity: limited to assumptions or, estoppel can be representations as to present fact (a beef that a contract has been signed) Proprietary (regards real property- estoppel by encouragement; estoppel by acquiescence) (riches v hogben- used to enforce gratuitous promises to grant an interest in land: promissory (a leads. B to believe that a will fulfil a promise: ashton v pratt drew a sharp distinction between the two. Estoppel as a sword: creates legal rights that, blocks party from pleading a legal argument the would have otherwise, representations that a party would not enforce existing rights je maintiendrai pty ltd v quaglia (1980) 26 sasr. 101; would not have otherwise existed (damages in contract when no contract existed without estoppel) Ltd v maher: an assumption that a contract will come into existence, or a promise be performed, or an interest granted to the plaintiff by the defendant austotel pty. No "presumption of reliance," party raising estoppel must always prove detrimental reliance.

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