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Contract: Essential Requirements and Formation

Promissory estoppel

  • 3 things to know
  • Components 2 and 3

Overview

Promissory estoppel, requirement of an existing legal relationship and reliance must the promisee show.

What you need to know

Answer each one before you reveal it.

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Key term

What is promissory estoppel?

Numbers

Which case is the origin of promissory estoppel?

Numbers

What were the facts of Central London Property Trust v High Trees House [1947]?

Questions from this subtopic

Each one with the model answer underneath.

  1. 1

    What is promissory estoppel?

    Model answer

    Promissory estoppel prevents a party from going back on a promise not to enforce strict legal rights. The doctrine operates where the other party has relied on that promise.

  2. 2

    Which case is the origin of promissory estoppel?

    Model answer

    Hughes v Metropolitan Railway (1877) is the origin of the doctrine. The landlord was prevented from relying on a repair notice suspended during negotiations to buy the lease.

  3. 3

    What were the facts of Central London Property Trust v High Trees House [1947]?

    Model answer

    Central London Property Trust v High Trees House [1947] concerned a wartime promise to halve the ground rent. Denning J held the landlord could not recover the full arrears for the war years.

  4. 4

    Why is High Trees regarded as a bold decision?

    Model answer

    The promise in High Trees was unsupported by consideration and would have failed under Foakes v Beer. The judgment of Denning J relied on equity rather than on consideration.

  5. 5

    State the requirement of an existing legal relationship.

    Model answer

    Promissory estoppel operates only between parties already bound by a contract. The doctrine modifies existing rights rather than creating new ones.

  6. 6

    Why is promissory estoppel described as a shield and not a sword?

    Model answer

    Combe v Combe [1951] held that promissory estoppel cannot be used to found a claim. A divorced wife could not sue on a maintenance promise for which she gave nothing.

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