Austrailain Law - Business Law report Essay Example | Topics and Well Written Essays - 2000 words

Austrailain Law - Business Law report - Essay ExampleThe case examples highlight Copernican elements required for promissory estoppel to be applicable. Keywords promissory estoppel, detriment. Content Introduction. 3 Promissory estoppel.4 Collier v P&M J Wright (Holdings)5 Collier v P&M J Wright case review...5 D & C Builders V Rees6 D & C Builders V Rees case review6 Conclusion7 References9 Introduction Estoppel in law implies to stop or bar a person from denying matters or truths that he/ she expressly or impliedly stated (Sharma 1994). Promissory estoppel can therefore be defined as legal belief that bars a person from making a promise and then withdrawing it at a m when a second party has reasonably ventureed upon the promise to their detriment (Spence 1997). If an individual makes a statement that causes a second party to act in a particular way, then that person will be estopped from denying the truth (Spence 1997). In order for promissory estoppel to hold, the promise or s tatement do must be reasonable. The statement must also be unequivocal meaning that there is no element of ambiguity in it. In Australian law, the tenet holds even if the parties did not have any preexisting relationship. The doctrine stipulates that it is necessary for the promisee to act to their detriment for it to hold. Promissory estoppel was established back in the nineteenth century in the English Law Courts. The case involved Metropolitan Railway Co v Hughes in the year 1877 (Cartwright 2006). The doctrine is especially important to the business world since it ensures that individuals are compensated if they incur losses when they act based on promises delivered by others. Australian law adopted promissory estoppel doctrine in the case of Legione v. Hateley, 1983 (Nolan 2000). In that case, the plaintiff had sued the defendant after he rescinded the contract on sale of land, which had already come to pass. The plaintiff had asked for more time to pay the balance he owed. P romissory estoppel usually applies in business dealings. It is meant to protect those who act upon statement and promises and in the process experience a evil or detriment. In Australian law, the doctrine is enforceable under certain conditions. These may include dishonesty from the person who makes a promise, presence of a contractual relation between individuals, or where a person has duty of information. It is important to note that there are some limitations on the doctrine of estoppel. As mentioned earlier, the doctrine holds only when the statement or promise made is of a factual nature. The other limitation is that the doctrine does not hold for promises meant to be fulfilled in the future (Cartwright 2006). Promissory estoppel In simple contracts, a person may be able to break an agreement and cause injury to others. This doctrine ensures that the promisee is held apt for his words. Promissory estop