Promissory or trustworthy estoppel has been developed by the courts for the occasion of ensuring that a ships company is faithful to a promise or representation made to another c totallyer who relies upon this promise or representation . This intervention by the courts prevents the troupe relying upon the promise from agony injustice if the promise or representation is being shamion . Its need arose because the rigid adherence to the common law touch requiring all contracts to be accompanied by consideration conduct to several unjust outcomes . This led to the development of a dogma in equity much(prenominal) that under certain tidy sum parties could be held to promises which were unaccompanied by consideration . This is the principle of equitable estoppel . ecclesiastic Denning of this principle of promissory estoppel is , A remedy has been piece . The harshness of common law has been relieved Equity has stretched its tender hand out to the debtorAlthough the principle was first referred to in the causa of Hughes v Metropolitan Railway Co in 1877 , it became more formally established in law by Lord Denning in the geek of Central London Property verify Ltd v High Trees House Ltd , and a full explanation of the principle was given by Lord Denning in the case of Combe v CombeThe case which made giant strides in enabling the principle of estoppel to enforce voluntary understandings is the decision of the High cost of Australia in Waltons Stores (Interstate ) Ltd v Maher . In this case an agreement took charge between the two parties whereby Maher would rent a piece of play to Waltons Stores . Before entering the lease agreement the Waltons required the devastation of the existing building and its replacement with a 14 ,000 second power foot building which would serve as a major(ip) retail outlet for them .
Maher was under the commonly held impression that such inactiveness and silence amounted to encouragement or assurance that something would pass on , and in this case led Maher to rely on the belief that the finalisation of the lease would be a mere formalness . Waltons withdrew and Maher commenced legal proceedings against them , eventually in the High mash of Australia , it was decided that equitable estoppel was applicable when one party to a relationship made a representation to another party that either something was going to make up place or that it would take place in the future causing the other party to act accordingly . In case the other party decides not to carry out its part of the agreement , accordingly equity allows the court to estop this infidelity . In their judgement mason CJ and Wilson J stated that The appellant s inaction , in all the circumstances , constituted clear encouragement to the respondents to continue to act on the basis of the assumption which they had made . It was unconscionable for it clear-sighted that the respondents were exposing themselves to detriment by acting on the basis of a false assumption , to adopt a course of inaction which encouraged them in the course they...If you want to get a full essay, order it on our website: Orderessay
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