BUSINESS LAW Case Study Example | Topics and Well Written Essays - 2000 words

BUSINESS LAW - Case Study Example Estoppel becomes applicable, only if the representation relied upon by the person claiming the benefit is unambiguous. In addition, the person claiming estoppel should undergo a detriment if there is a departure from the terms of the promise. As opined in Legione v Hateley, the party claiming estoppel should be placed in a situation wherein there would be a detriment to it, if the promise was to be broken (Gillies, 2004, p. 178). In order to deem the promise of the promisor to be consideration, it has to be proved that the promise was given or the act performed on the basis of the promisor’s request. Moreover, there should have been reliance upon the promise made by the promisor. The doctrine of promissory estoppel emerged with the decision in Central London Property Trust Ltd v High Trees House Ltd. Such existence has been subsequently confirmed in rulings made in England and Australia. This all important principle was defined in the following manner, during the ruling in Combe v Combe. Whenever, one of the parties makes to the other party a promise that has the intention of influencing the legal relations between them, and if the other party relies on this promise and acts on it, then the first party cannot revert to the prior legal relationship between them (Gillies, 2004, p. 178). Thus, promissory estoppel has an effect that is similar to a breach of promise. In instances, wherein a party convinces another party that a contract would emerge from their negotiations and subsequently fails to keep its word, the court can prevent such a party from resorting to the defense of absence of contract (Miller & Cross, 2012, p. 321).In such cases, it is deemed that a contract between these parties is in place. In order to establish promissory estoppel, the following conditions have to be proved. The presumption of a specific legal relationship between the first and second parties. The second