The Doctrine of Estoppel: Simplified for Students
Introduction
There are several theories and
tenets in the legal community that seek to uphold justice and equity. The
**doctrine of estoppel** is one such crucial idea. The phrase may sound
complex, but it's basically a straightforward premise that stems from the desire
to avoid injustice. To make it easier to understand, let's dissect it.
What is the Estoppel Doctrine?
Estoppel
prohibits someone from breaking their word or retracting previously established
facts, particularly when another person has depended on those facts or
commitments. It's essentially a rule that makes people answerable for their
words and deeds in order to prevent hurting other people.
The Doctrine's Inception
Estoppel is derived from the equity idea, which promotes fairness.English law served as its foundation, and other legal systems, particularly Indian law, have widely embraced it. **Section 121 of the BSA ACT 2023** codifies it.Key Elements
of Estoppel
The following requirements must
be fulfilled for the doctrine to be applicable:
1. Representation or Conduct: One of the parties must have represented a fact,
either explicitly stated in writing or implicitly by their actions.
2. Reliance: That representation must have been relied upon by another party.
3. Positional Change: The party depending on the representation must have taken
action or altered their stance as a result of it.
4. Resulting injury: The other party would experience loss or injury if the
first party was permitted to deny the truth.
Estoppel
Types
1. Promissory estoppel:
This kind occurs when one party promises
something and the other fulfils it. The promisor cannot back out of a promise
if it led the promisee to rely on it, even in the absence of a formal contract.
Example: At the end of the year, a corporation promises its employees a bonus.
An employee takes out a loan based on this pledge. The business cannot
thereafter refuse to give the bonus.
2. Record-Based Estoppel:
This occurs in court proceedings where a verdict has been rendered. In
subsequent cases, the parties cannot dispute the facts established by the
ruling.
3. Deed-Based Estoppel:
This holds true for written contracts or deeds. A person cannot thereafter
retract statements they made in a deed if they are made.
4. Conduct-Based Estoppel:
A person cannot later refute another person's opinion if their actions or
behaviour have led them to believe in a particular state of facts.
Doctrine Significance
To maintain consistency and fairness, the notion of estoppel is essential. It
keeps:
Deception or fraud.
Superfluous arguments.
Damage to people who behave honourably because of the words or deeds of others.
Estoppel
is a useful tactic, but it has drawbacks.
1. It is
not suitable for:
Enforce a contract that is unlawful.
Override the terms of the statute.
2. It doesn't apply to legislation; it only pertains to facts.
3. It cannot be used against someone who lacks legal capacity or who is a
minor.
An Example from Real Life
Consider a situation where a landlord grants a renter a six-month rent-free
stay. The tenant doesn't make any arrangements for other residence based on
this pledge. Since the renter depended on their guarantee, the landlord is
unable to seek rent for the remaining six months.
In conclusion
A crucial idea that encourages integrity and equity in both legal and
commercial transactions is the doctrine of estoppel. Building trust and
preventing needless injury are achieved by making sure that people follow
through on their commitments. Since this idea serves as the cornerstone of
equal justice in the legal system, it is imperative that students comprehend
it.
