Promissory estoppel

Promissory estoppel is an equitable doctrine which in some instances can stop a person going back on a promise which is not supported by consideration. Promissory estoppel was developed by an obiter statement by Denning J (as he then was) in Central London Property Trust Ltd v High Trees Ltd [1947] KB 130 (Case summary). Denning J based the doctrine on the decision in Hughes v Metropolitan Railway (1876-77) L.R. 2 App. Cas. 439 (Case summary). The House of Lords affirmed the existence of promissory estoppel in contract law in Tool Metal Manufacturing v Tungsten [1955] 1 WLR 761 (Case summary).

Requirements of promissory estoppel: 

  1. A pre-existing contract or legal obligation which is then modified

  2. There must be a clear an unambiguous promise

  3. Change of position

  4. It must be inequitable to allow the promisor to go back on their promise

 

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1. A pre-existing contractual or legal obligation which is then modified:


Combe v Combe [1951] 2 KB 215      Case summary

 

2. A clear and unambiguous promise.

 

This may be implied through conduct:

 

Woodhouse A.C. Israel Cocoa Ltd. v. Nigerian Product Marketing Co. Ltd. [1972] AC 741             Case summary

3. Change of position:



Alan v El Nasr [1972] 2 WLR 800                          Case summary   

4. It must be inequitable to allow the promisor to go back on their promise:


D & C Builders v Rees [1966] 2 WLR 28 Case summary

 

 Promissory estoppel