Waiver and Promissory Estoppel Overview
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Questions and Answers

What does a waiver allow a party to do in a contract?

  • Change the terms of the contract unilaterally
  • Give up contract rights through deliberate action (correct)
  • Claim damages for breach of contract without notice
  • Enforce a contract without consideration
  • In which case was the doctrine of waiver notably developed?

  • Charles Rickards Ltd v Oppenheim (correct)
  • Hughes v Metropolitan Railway Co
  • Smith v Jones
  • Hickman v Haynes
  • What is the primary purpose of promissory estoppel?

  • To prevent unjust wrongdoing due to inconsistent actions (correct)
  • To provide a legal basis for contract modifications
  • To nullify any contractual obligations without notice
  • To enforce a right that contradicts previous agreements
  • What is required for a modification of a contract to be legally binding under common rules?

    <p>Consideration in return</p> Signup and view all the answers

    What was the specific issue in the case of Hughes v Metropolitan Railway Co?

    <p>Failure to complete repairs by a set deadline</p> Signup and view all the answers

    What is necessary for reliance to be considered adequate in promissory estoppel according to Lord Denning?

    <p>Proof of reliance is sufficient.</p> Signup and view all the answers

    In the case of D & C Builders v Rees (1966), what was the reason the promise did not give rise to promissory estoppel?

    <p>The debtor took advantage of the builders' financial difficulties.</p> Signup and view all the answers

    What does it mean for enforcement of strict legal rights to be considered inequitable?

    <p>When it extracts the promise by taking advantage of the promisor.</p> Signup and view all the answers

    What is the primary effect of promissory estoppel as outlined in the provided content?

    <p>To temporarily suspend the enforcement of rights.</p> Signup and view all the answers

    According to the content, how can modification of contract rights be characterized?

    <p>As temporary and reversible.</p> Signup and view all the answers

    What principle does the statement 'It is a shield and not a sword' refer to in the context of promissory estoppel?

    <p>It provides defense against enforcement of rights.</p> Signup and view all the answers

    What must a judge consider when deciding whether to enforce a promise in the context of equitable doctrines?

    <p>The overall fairness and equity of the situation.</p> Signup and view all the answers

    In Combe v Combe (1951), what was significant about the relationship between the parties?

    <p>There was no formal contract established between them.</p> Signup and view all the answers

    What must be proven to invoke the doctrine of promissory estoppel?

    <p>The promise must be relied upon by the promisee.</p> Signup and view all the answers

    In the High Trees case, what was the original annual rent agreed upon for the lease?

    <p>£2,500</p> Signup and view all the answers

    Which of the following is NOT a condition that must be fulfilled before invoking promissory estoppel?

    <p>The promise must involve a financial transaction.</p> Signup and view all the answers

    What is the legal outcome of the tenant's reliance on a promise in the High Trees case?

    <p>The landlord cannot enforce rent until the flats are full again.</p> Signup and view all the answers

    What aspect of the promise is important for it to be considered for promissory estoppel?

    <p>It should clearly state the intention to affect legal relations.</p> Signup and view all the answers

    How did the conditions of the war affect the High Trees case?

    <p>It prompted the landlord to reduce the rent.</p> Signup and view all the answers

    What does reliance provide in the context of promissory estoppel?

    <p>Justification for enforcing the promise.</p> Signup and view all the answers

    Which statement is true about the doctrine of promissory estoppel based on the content provided?

    <p>It modifies existing relationships but does not create new ones.</p> Signup and view all the answers

    What was the consequence when the flats became fully occupied after the war?

    <p>The landlord could demand the full rent for future periods.</p> Signup and view all the answers

    Which of the following best describes the role of ambiguity in the context of promissory estoppel?

    <p>It prevents the claim unless clarified.</p> Signup and view all the answers

    Study Notes

    Waiver and Promissory Estoppel

    • A waiver is the relinquishment of contract rights by one party, often by a positive act or inaction.
    • Waiver can be demonstrated through deliberate inaction.
    • Hickman v Haynes (1875) illustrates a buyer waiving delivery time by asking for later delivery.

    Promissory Estoppel

    • Promissory estoppel is a legal principle preventing someone from arguing a right that contradicts a prior agreement.
    • It's used to prevent unjust actions based on inconsistencies.
    • Close link exists between waiver and promissory estoppel.
    • Contract modifications require consideration, but promissory estoppel can create binding promises without consideration in specific circumstances.
    • Hughes v Metropolitan Railway Co (1877) is a crucial case in developing promissory estoppel.

    Pre-Existing Contractual Relationship

    • Promissory estoppel applies only to pre-existing contractual relationships, not to create new ones.
    • There must be a clear promise or representation to modify existing legal obligations between parties.

    Reliance

    • Reliance is a critical aspect of promissory estoppel.
    • Promises relied upon must have influenced the promisee's conduct.
    • Reliance (including detrimental reliance) provides grounds for enforcing promises.

    Inequitable Enforcements

    • Promissory estoppel can't enforce a promise if it would be inequitable to enforce the strict legal right.
    • Promisor should not have exploited a vulnerable position.
    • D & C Builders v Rees (1966) illustrates where debt modification was not supported by promissory estoppel due to inequitable conduct.

    Effect of Promissory Estoppel

    • Promissory estoppel is suspensory, meaning future rights are not nullified.
    • High Trees House Ltd v Central London Property Trust Ltd (1947) demonstrated the temporary nature of the promise (limited to wartime).
    • Tool Metal Manufacturing Co Ltd v Tungsten Electric (1955): further developed the scope of promissory estoppel's temporary application.

    No New Rights

    • Promissory estoppel does not create new legal rights, only modifies the enforcement of existing ones.
    • Used to prevent enforcement, not establish new rights.
    • Combe v Combe (1951) demonstrated that promissory estoppel cannot be used as a basis for creating new claims.

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    Description

    This quiz explores the concepts of waiver and promissory estoppel in contract law. It highlights key cases such as Hickman v Haynes and Hughes v Metropolitan Railway Co that illustrate these principles. Understand how each concept relates to contract modifications and the enforcement of promises.

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