What is estoppel by convention?
What is estoppel by convention?
As confirmed and clarified by the courts in a recent construction case, estoppel by convention means that a party is prevented, or is “estopped”, from arguing a point due to the way the parties have acted. It can arise when parties to a contract act on an assumed state of the law or the facts.
What are the elements of successfully establishing an estoppel claim?
The 5 elements of Promissory Estoppel are:
- Some form of legal relationship either exists or is anticipated between the parties.
- A representation or promise by one party.
- Reliance by the other party on the promise or representation.
- Detriment.
- Unconscionability.
Can estoppel be used as a sword?
An estoppel by convention can arise where “the parties to a contract act on an assumed state of facts or law”. Estoppel by convention is to be used as a shield and not as a sword. The estoppel can come to end and will not apply to future dealings, once the common assumption is revealed to be erroneous.
When does an estoppel by convention need to be made?
An estoppel by convention can arise where “the parties to a contract act on an assumed state of facts or law”. The assumption must be shared, or at least “made by one party and acquiesced in by the other”, and must be communicated between the parties in question.
When does the estoppel argument come to an end?
The estoppel argument can only be used as a defensive mechanism to a claim, rather than to found a claim in its entirety. Once the common assumption on the facts or the law is made known to the other party, then the estoppel comes to an end.
Can a estoppel be used as a shield?
Operation and effect of the rule that an estoppel is to be used as a shield and not a sword. Extent to which it is necessary to show reliance on the parties’ common assumption in order to establish an estoppel by convention. One thought on “ Estoppel by convention: a shield or a sword? ”
Why was Mears not repaid for estoppel payment?
No cause of action entitling Mears to payment of the deducted sum (other than estoppel) was identified. The reference to Mears being “repaid” is also surprising, as Mears did not make any payment to Shoreline that was capable of being repaid.
When to use estoppel by convention in construction?
As confirmed and clarified by the courts in a recent construction case, estoppel by convention means that a party is prevented, or is “estopped”, from arguing a point due to the way the parties have acted. It can arise when parties to a contract act on an assumed state of the law or the facts.
The estoppel argument can only be used as a defensive mechanism to a claim, rather than to found a claim in its entirety. Once the common assumption on the facts or the law is made known to the other party, then the estoppel comes to an end.
Operation and effect of the rule that an estoppel is to be used as a shield and not a sword. Extent to which it is necessary to show reliance on the parties’ common assumption in order to establish an estoppel by convention. One thought on “ Estoppel by convention: a shield or a sword? ”
What do you need to know about promissory estoppel?
5 Elements of Promissory Estoppel in Contract Law and Legal Agreements 1 Don’t Make Promises in Business You Can’t Keep. 2 Promissory Estoppel. 3 The 5 elements of Promissory Estoppel are: Some form of legal relationship either exists or is anticipated between the parties. 4 Remedies. 5 When and How to Use Estoppel. 6 Related