Definition
Estoppel is a judicial device in common law legal systems whereby a court may prevent, or estop, a person from making assertions or from going back on his or her word; the person being sanctioned is “estopped.” This principle is applied to ensure fairness and justice, preventing an individual from arguing something contradictory to an earlier stance if it would lead to an inequitable outcome.
Examples
Promissory Estoppel: If an employer promises an employee a pension despite no formal contract and the employee consequently relies on that promise by not contributing to personal savings, the employer may be estopped from denying the pension.
Estoppel by Representation: If one party, by words or conduct, makes a clear representation as to a fact that another party relies on to their detriment, the first party cannot later deny that fact.
Issue Estoppel: If a fact has been judicially determined in a previous litigation involving the same parties, it cannot be re-litigated.
Frequently Asked Questions (FAQs)
What is the main purpose of estoppel?
The main purpose of estoppel is to prevent injustice resulting from a party behaving in a manner inconsistent with its previous conduct or statements, which another party has relied on to their detriment.
How is estoppel different from waiver?
While estoppel prevents one from arguing something contradictory to previous behavior, waiver is the voluntary relinquishment of a known right. Both concepts, however, aim to prevent unfair outcomes.
Can estoppel be used in criminal cases?
Yes, estoppel can be used in criminal cases, particularly in instances like double jeopardy where a person cannot be tried again for the same crime if already acquitted or convicted.
What is promissory estoppel?
Promissory estoppel is a legal doctrine that enables a party to recover the benefit of a promise made, even without a formal contract, where they have reasonably relied on the promise to their detriment.
Related Terms with Definitions
- Waiver: The voluntary relinquishment or surrender of some known right or privilege.
- Reliance: Action taken based upon the assurance or promise of another party.
- Detriment: The injury or loss suffered by a party relying on the promise or assertion of another.
- Double Jeopardy: The legal doctrine which prohibits an accused person from being tried again on the same (or similar) charges following an acquittal or conviction.
Online References
Suggested Books for Further Studies
- “Contract Law: Text, Cases, and Materials” by Ewan McKendrick
- “Principles of Contract Law” by Robert A. Hillman
- “Cheshire, Fifoot, and Furmston’s Law of Contract” by M.P. Furmston
Fundamentals of Estoppel: Business Law Basics Quiz
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