Promissory Estoppel

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In the context of promissory estoppel, what is the critical role of reliance by the promisee?

It allows the court to determine the financial stability of the promisee.
It demonstrates the promisee's initial agreement to the original contractual terms.
It confirms the pre-existing contractual relationship between the parties.
It provides justification for enforcing the promisor's modified promise, influencing the promisee's conduct. (correct)

Why is a pre-existing contractual relationship a fundamental condition for invoking promissory estoppel?

It simplifies the process of seeking legal remedies if the promise is broken.
It ensures that any modifications do not undermine the initial intentions of either party
It establishes the financial capacity of both parties to enter into new agreements.
It provides a baseline against which any modifications to the agreement can be assessed, as promissory estoppel serves to modify an existing relationship, not create a new one. (correct)

What is the legal effect of promissory estoppel on future rights within a contract?

It compels the promisor to compensate the promisee for any potential future losses.
It permanently nullifies all future rights outlined in the original contract.
It automatically creates new, enforceable rights for the promisee.
It suspends, but does not eliminate, the enforcement of strict legal rights, allowing for their reassertion under changed circumstances . (correct)

In what scenario would silence or a failure to act be considered sufficient to claim promissory estoppel?

Silence and failure to act are generally insufficient; there must be an obvious promise not to enforce full legal rights. (C) Signup and view all the answers

What is the significance of the High Trees House case in the context of promissory estoppel?

It demonstrated that lessees organizing daily business, based on the promise of reduced rent demonstrated reliance on the owners promise that this would be acceptable. (C) Signup and view all the answers

How does a court determine whether it is 'inequitable' to revert to the original terms of a contract after a promise of temporary modification has been made?

By evaluating whether the promisee has significantly altered their position in reliance on the promise, making it unjust to enforce the original terms. (B) Signup and view all the answers

If a statement made during contract negotiations is ambiguous, what action must the representee take to potentially claim estoppel?

The representee seeks clarification from representor. (C) Signup and view all the answers

Considering the provided content, what critical element was missing in the 1940 agreement between C and D that would typically be required to legally support C's promise to reduce rent?

Consideration supported by D for this promise. (D) Signup and view all the answers

Based on the scenario with C and D, under what condition was C entitled to demand the entire rent, reflecting a return to the original contractual terms?

When property markets returned to normal after the war/when flats became full again. (B) Signup and view all the answers

How does promissory estoppel differ from traditional contract law regarding the creation of new rights?

Promissory estoppel primarily suspends existing rights and cannot create new ones, unlike traditional contract law which focuses on establishing new rights and obligations. (B) Signup and view all the answers

In the context of contract law, what is the critical distinction between a 'waiver' and 'promissory estoppel'?

A waiver involves the relinquishment of a known right, while promissory estoppel prevents the assertion of a right that contradicts prior assurances. (B) Signup and view all the answers

How did the court rule in Hickman v Haynes (1875) and what principle did this ruling establish regarding contractual obligations?

The court ruled that the buyer had waived his right to demand delivery on time, establishing that such rights can be temporarily suspended but must provide reasonable notice before reasserting it. (A) Signup and view all the answers

What foundational principle underlies the doctrine of promissory estoppel in contract law?

Preventing unjust detriment that would result if a party is allowed to go back on a promise, even without formal consideration. (C) Signup and view all the answers

In Hughes v Metropolitan Railway Co (1877), what critical factor led the House of Lords to grant the tenant equitable relief against forfeiture of the lease?

Ongoing negotiations between the landlord and tenant regarding the potential sale of the lease, which suspended the original repair obligations. (D) Signup and view all the answers

What legal effect did Lord Denning's judgment in Central London Property Trust Ltd v High Trees House Ltd (1947) have on the doctrine of promissory estoppel?

It revitalized the doctrine of promissory estoppel, demonstrating circumstances in that a promise could be binding even without consideration. (B) Signup and view all the answers

A company informs its supplier that it will temporarily reduce payments due to unforeseen financial difficulties. The supplier agrees. Later, the company's financial situation improves. Under promissory estoppel, what options does the supplier have regarding the original payment schedule?

The supplier can revert to the original payment schedule prospectively, but cannot claim the difference for the period payments were reduced. (B) Signup and view all the answers

In what fundamental way does promissory estoppel challenge traditional contract law principles regarding consideration?

It allows for the enforcement of promises even when no benefit is conferred or detriment suffered in return. (D) Signup and view all the answers

In which scenario would a judge most likely refuse to apply promissory estoppel, despite the presence of a modifying promise and reliance?

When the promisor extracted the modifying promise by exploiting the promisee's known financial vulnerability. (A) Signup and view all the answers

A landlord promises a tenant a rent reduction due to significant property damage. The tenant, relying on this promise, invests in improving the property. If the landlord attempts to retract the rent reduction, what legal recourse does the tenant likely have?

The tenant can invoke promissory estoppel to prevent the landlord from retracting the rent reduction, at least for a reasonable period given the tenant's reliance. (B) Signup and view all the answers

Which of the following scenarios exemplifies the principle that promissory estoppel serves as a 'shield, not a sword'?

A debtor defends against a creditor's claim for the full original debt by citing the creditor's promise to accept partial payment as full settlement. (D) Signup and view all the answers

What is the critical factor in determining whether a promisor can revive their original contractual rights after a period of suspension under promissory estoppel?

Whether the promisor provides reasonable notice to the promisee, allowing them to adjust their position based on the revived terms. (D) Signup and view all the answers

Under what circumstances might a court refuse to apply the doctrine of promissory estoppel, even if a promise was made and relied upon?

If the promisee acted inequitably or unfairly in obtaining the promise. (D) Signup and view all the answers

In a situation where a promise modifying an existing contract is proven and relied upon, what factor determines whether a judge will apply promissory estoppel?

Whether applying the estoppel aligns with principles of fairness, considering if the promisee took advantage of the promisor. (A) Signup and view all the answers

How does the doctrine of promissory estoppel interact with the requirement for written contracts under the Statute of Frauds?

Promissory estoppel can override the Statute of Frauds, allowing enforcement of oral promises that would otherwise be unenforceable. (A) Signup and view all the answers

How does the doctrine of promissory estoppel affect future contractual rights once it has been established?

It suspends the original rights temporarily, allowing them to be revived with reasonable notice. (B) Signup and view all the answers

Which scenario best demonstrates the limitation that promissory estoppel cannot create new rights where none existed before?

A company uses a competitor's promise to delay market entry as grounds to sue for lost profits when the competitor launches on schedule. (B) Signup and view all the answers

In what way does the requirement of 'detrimental' reliance function within the context of promissory estoppel, particularly when viewed against Lord Denning's perspective?

Reliance need not be detrimental, any action taken in reliance on the promise is sufficient even if it does not disadvantage the party. (C) Signup and view all the answers

Considering the equitable nature of promissory estoppel, what underlying principle guides a court's decision in its application?

The prevention of unjust enrichment or unfair advantage, balancing the interests of both the promisor and the promisee. (B) Signup and view all the answers

How does the principle established in Tool Metal Manufacturing Co Ltd v Tungsten Electric (1955) illustrate the suspensory effect of promissory estoppel?

It shows that while a promise is binding during a specified period, the promisor can revert to the original terms with reasonable notice after that period. (D) Signup and view all the answers

What critical distinction did Combe v Combe (1951) highlight regarding the scope and application of promissory estoppel?

Promissory estoppel cannot create a new cause of action where one did not exist (C) Signup and view all the answers

Waiver

Giving up contract rights by one party through a positive act.

Hickman v Haynes (1875)

Buyer waived right to timely delivery by requesting a later date; could not demand original date without notice.