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Lecture 4

Lecture 4 law (4).docx

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Department
General Engineering
Course Code
GNG4170
Professor
All

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Lecture 4
GNG 4170
Equitable Estoppel -addresses problem of a gratuitous promise is not useful and is useless to
contract. A gratuitous promise must be made in order for equitable estoppels to apply in a
hypothetical.
1) pre-existing legal relationship-showing foundation of a legal relationship
2) Must show was promised or reasonably lead to believe that the strict terms of the contract
would not be enforced
3) relied on that promise or understanding and it affected what was or wasn’t done
We use EE to stop gratuitous promises
Owen Sound- not allowed to terminate
Conwest Exploration – deny the option/benefit
These are true for all contract terms.
For all hypotheticals: explain what type of problem it is.
-This question concurs GP and EE…
-GP is a promise for exchange…nothing given..
-normally just basing your argument on GP wouldn’t work, but they would argue and say EE
applies.
The contractor has to show 3 things to apply:
1) pre-existing legal relationship-showing foundation of a legal relationship
2) Must show was promised or reasonably lead to believe that the strict terms of the contract
would not be enforced
3) relied on that promise or understanding and it affected what was or wasn’t done
John Burrows
*rare occasion when referencing this case
-supply of equipment
-lent him $12000, and made a contract on how to pay back
The contract is on the first day of every month has to pay $1000 and the interest
If after the 12 payments, debt is paid off
-if he defaults in anyway, can make him pay all the debt at once
-always making excuses on paying then on month 7, demands that the entire debt has to be
paid at once
-John Burrows makes an argument under EE that “he led him to believe his terms aren’t strict”
-court called it “indulgence” for which he was being laid back and not complaining for the first
few months
-in order for EE to be valid, #2
-active form of communication
-isn’t considered reasonable

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Description
Lecture 4GNG 4170Equitable Estoppel addresses problem of a gratuitous promise is not useful and is useless to contract A gratuitous promise must be made in order for equitable estoppels to apply in a hypothetical1 preexisting legal relationshipshowing foundation of a legal relationship 2 Must show was promised or reasonably lead to believe that the strict terms of the contract would not be enforced3 relied on that promise or understanding and it affected what was or wasnt doneWe use EE to stop gratuitous promisesOwen Sound not allowed to terminateConwest Explorationdeny the optionbenefitThese are true for all contract termsFor all hypotheticals explain what type of problem it isThis question concurs GP and EEGP is a promise for exchangenothing givennormally just basing your argument on GP wouldnt work but they would argue and say EE appliesThe contractor has to show 3 things to apply1 preexisting legal relationshipshowing foundation of a legal relationship 2 Must show was promised or reasonably lead to believe that the strict terms of the contract would not be enforced3 relied on that promise or understanding and it affected what was or wasnt doneJohn Burrowsrare occasion when referencing this casesupply of equipmentlent him 12000 and made a contract on how to pay backThe contract is on the first day of every month has to pay 1000 and the interestIf after the 12 payments debt is paid offif he defaults in anyway can make him pay all the debt at oncealways making excuses on paying then on month 7 demands that the entire debt has to be paid at onceJohn Burrows makes an argument under EE that he led him to believe his terms arent strictcourt called it indulgence for which he was being laid back and not complaining for the first few monthsin order for EE to be valid 2active form of communicationisnt considered reasonable
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