Contract Law Module: Lesson 5 - Estoppel

Overview of Estoppel

Estoppel: An equitable remedy to enforce a promise not enforceable as a contract (often due to lack of consideration).
Types of Estoppel: Focus on Promissory Estoppel and Proprietary Estoppel.

Definition: Arises when one party promises not to enforce their rights and later attempts to do so.
Key Case: Hughes v. Metropolitan Railway
- Hughes leased property to Metropolitan Railway.
- Hughes demanded repairs, but entered into negotiations, implying non-enforcement.
- Metropolitan Railway didn’t complete repairs, but Hughes couldn't enforce termination due to estoppel.
- Court Ruling: Hughes led Metropolitan Railway to believe repair enforcement was relaxed.
Legal Principles:
- Relies on absence of consideration for the promise.
- Rights limiting: Doesn’t create new causes but limits enforcing strict rights.
- Success requires reasonable reliance on the promise leading to detriment.

Definition: Enforces a promise that creates new legal rights over property.
Key Case 1: Crabb v. Arun District Council
- Crabb and Council's agreement implied access rights.
- Council tore down access point but were estopped from denying access.
- Court Ruling: Implied promise sufficed due to Crabb's reliance.
Key Case 2: Calpersmith v. Morgan (Supreme Court of Canada)
- Max moved to care for mother, relied on assurance of property interest.
- Promise not explicit but implied, leading to reliance and detriment.
- Court Ruling: Estoppel applies even without promisor's initial property interest.
- Principle: Promisee's reliance must be reasonable.

Promissory vs. Proprietary Estoppel:
- Promissory: Limits rights where enforcing them would be unjust.
- Proprietary: Can create new rights and assets.
- Both require reliance leading to detriment.

Estoppel serves to prevent unfair enforcement or denial of rights based on previous conduct, promises, or representations.
Next Lesson: Focus on breach of contract and remedy of specific performance.
Action Items: Complete knowledge check questions and participate in the discussion forum.