What is estoppel?

 

Estoppel is designed ‘to prevent an unjust departure by one person from an assumption adopted by another as the basis of some act or omission which, unless the assumption be adhered to, would operate to that other's detriment. Whether a departure by a party from the assumption should be considered unjust and inadmissible depends on the part taken by him in occasioning its adoption by the other party.

Estoppel is a substantive principle of law which operates to preclude a party to legal proceedings from asserting against another party either facts, legal rights, or the absence of legal obligations, to the extent that it would be unconscionable to do so.

The term is related to the verb ‘estop’ which comes from the Old French term estopper- ‘stop up, impede.

Old French term estoupail-meaning a plug or stopper.

When might an estoppel argument be useful?

Estoppel may be useful in the following situations

During negotiations where the offeree assumes the offer will not be revoked and acts to their detriment

Where a collateral contract is not permitted

Where the doctrine of privity prevents a third party from enforcing the contract

 Where a contract is rendered void or unenforceable (Eg where there is non-compliance with the requirement of writing)

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