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Formation of a Contract

Promissory Estoppel and Privity of Contract

  • 3 things to know
  • Paper 3

Overview

Recall questions on promissory estoppel as a shield not a sword and its requirements, privity at common law, when the Contracts (Rights of Third Parties) Act 1999 lets a third party enforce a term, and limits on varying the contract.

What you need to know

Answer each one before you reveal it.

Your recallNot started
Key term

What does it mean that promissory estoppel operates as 'a shield not a sword'?

Key term

What is the doctrine of privity of contract?

Key term

How must a third party be identified in the contract to have enforcement rights under the 1999 Act?

Questions from this subtopic

Each one with the model answer underneath.

  1. 1

    What is promissory estoppel?

    Model answer

    A doctrine that prevents a promisor from going back on a promise to accept less than owed where the promisee has relied on that promise, even without fresh consideration.

  2. 2

    What does it mean that promissory estoppel operates as 'a shield not a sword'?

    Model answer

    Promissory estoppel can only be used as a defence to a claim; it cannot be used to found an independent cause of action.

  3. 3

    What type of promise is required for promissory estoppel to apply?

    Model answer

    A clear and unequivocal promise by the promisor.

  4. 4

    What must the promisee have done for promissory estoppel to operate?

    Model answer

    The promisee must have relied on the promise.

  5. 5

    What equitable requirement must be satisfied for promissory estoppel to apply?

    Model answer

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

  6. 6

    What is the doctrine of privity of contract?

    Model answer

    The doctrine that only parties to a contract can acquire rights or be subject to obligations under it.

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