12 Questions
What is the purpose of Promissory Estoppel?
To ensure a party does not go back on their promise when another party has relied upon that promise.
How does Promissory Estoppel relate to consideration?
Promissory Estoppel operates to stop a party from going back on their promise. Consideration involves the exchange of promises, making it a useful tool in providing a remedy for aggrieved parties.
What effect does Promissory Estoppel have on a party who tries to break their promise?
It stops the party from going back on their promise.
Which case is the leading authority on Promissory Estoppel?
Central London Property Trust Ltd v High Trees House Ltd KB 130.
What were the circumstances in Central London Property Trust Ltd v High Trees House Ltd KB 130 case?
Party A leased properties from Party B at £2,500 a year. After World War 2, Party B agreed to reduce the rent to £1,250 due to difficulties in letting the flats.
Why did Party B agree to reduce the rent in Central London Property Trust Ltd v High Trees House Ltd KB 130 case?
Due to the difficulty of letting all the flats out during World War 2.
What is the significance of promissory estoppel in the context of arrears payment?
It prevents Party B from reclaiming the arrears in full for £2,500 as Party A had acted upon the promise of paying £1,250.
According to Lord Denning, what conditions make a promise binding under promissory estoppel?
The promise must be intended to be binding, intended to be acted upon, and actually acted upon.
What are the restrictions to promissory estoppel?
- Need for an existing legal relationship. 2. Detrimental reliance on the promise. 3. Can only be used as a defense. 4. Inequitable for promisor to go back on the promise.
What did Lord Denning confirm regarding the requirement of an existing legal relationship in promissory estoppel?
Generally, promissory estoppel can only operate when there is a pre-existing legal relationship.
What is the test for reliance in promissory estoppel?
The promisee must rely on the promisor's promise for promissory estoppel to operate.
What view did Lord Denning express in Evenden v Guildford City FC QB 917 regarding promissory estoppel and existing legal relationships?
He expressed the view that it could apply to parties without an existing legal relationship.
Explore the concept of Promissory Estoppel as a remedy for unfair circumstances in common law. Learn how Promissory Estoppel relates to consideration and the prevention of one party going back on their promise when the other party has relied on it.
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