Equitable Estoppel (II) : Topic Outline
Equitable Estoppel (II) : Topic Outline
Equitable Estoppel (II) : Topic Outline
TOPIC OUTLINE
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Definition Definition
• In COMBE v COMBE [1951] 1 AER 767 COA : • In MURRUGGAPA CHETTIAR v CHINNIAH [1962] 28
“ Where one party has, by his words/conduct, made to the other a MLJ 95 Ong J :
promise/assurance which was intended to affect legal relations • “If an assurance was intended to be acted upon &
between them & to be acted accordingly, then, once the other it was acted upon by one party who altered his own
party has taken him at his word & acted on it, the one who gave position on the faith of it, it must be held binding
the promise/assurance cannot afterwards be allowed to revert to on the other”
the previous legal relations as if no such promises/assurance had
been made to him; but he must accept their legal relations subject
to the qualification which he himself has introduced, even though
it is not supported in point of law by any consideration, but only
his word”
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• This concept of promissory estoppel was made famous by • From the 2 earlier cases, to invoke Prom. Estp:
Denning J in the High Court case of CENTRAL LONDON PROP 1. Requires a pre-existing contractual relationship between parties
TRUST LTD v HIGH TREES HOUSE LTD 1947 KB 130 (High which give rise to certain legal rights/obligations
Tree’s Case)
2. Exist course of negotiations (promise); express/implied undertaking
• Denning had propounded this doctrine based on 2 earlier that the legal rights under such contact will not be enforced/suspend
decisions made by the House of Lords and the Court of /kept in abeyance
Appeal. i.e. in HUGHES v METROPOLITAN RAILWAY and
BIRMINGHAM & DISTRICT LAND CO. v LONDON & NORTH 3. The promisor intends that the promise be relied upon and promisee
WESTERN RAIL CO . does in fact rely upon it
4. The promisor will not be permitted to enforce his legal rights where it
would be inequitable to do so.
• In HIGH TREES’ case it was further developed by Lord Denning.
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Prom. Estp – HIGH TREES’ CASE Prom. Estp – HIGH TREES’ CASE
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• Generally, it can be used only as a defence and cannot be 2. the promisor can revoke / resile from his promise on
used to create a cause of action (COMBE v COMBE). giving reasonable notice (not necessarily formal), giving
the other party a reasonable opportunity to resume his
• It suspends & does not fully extinguish the promisor’s position.
strict legal rights as it may be revoked. (TOOL METAL 3. The promise duly becomes final and irrevocable if the
MANUFACTURING CO. LTD v TUNGSTEN ELECTRIC CO.LTD promisee cannot resume his position.
(1955) 1 WLR 761
• It is not permanent in nature and subjected to certain
limitations as laid down in the case of EMMANUEL
AYODEJI AJAYI v BRISCOE 1964 3 AER 556:-
1. that the other party has altered his position
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CASES CASES
• By allowing this to continue, it was unconscionable. As a • V commenced an action, however the Commonwealth then
remedy, the court treated the contract as complete and gave went back on all promises. Commonwealth wanted to
damages for breach of contract. amend their defense to the contrary. V sought to estop the
• COMMONWEALTH v VERWAYEN (1990) 170 CLR 394 – Commonwealth from relying on the fact that V was out of
Verwayen was a sailor injured in the Voyager disaster in time.
1964. 1984,he commenced action against Commonwealth. • Majority of judges on appeal held: Commonwealth was
He did not take action for 20 years, and was statute barred, estopped from denying based on their representations as
however the Commonwealth made an announcement that well as their promise.
they would accept liability and not enforce the statute of • Note: there is no contractual relationship between parties
limitations. A letter was also issued by a Minister to V to the though they are in legal relations.
same effect.
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• 3 .The promisee acts in reliance of that promise - it is usually • 4. promisee acts upon the promise , altering his position to
invoked where promisee in reliance on that promise suffered his detriment.
detriment; or where he alters his position as a result of • Inequitable for the promisor to go back on his promise .
relying on that promise. There must be a change in the
circumstances of the promisee. • need to show that due to reliance on part of the promisee
has lead him to be in a disadvantageous position.
• Court will use objective test in determining whether it is
reasonable to rely on the promise made. • If promisee did not rely on the promise, it would not be
inequitable for the promisor to go back on his promise
• Action or conduct must be reasonable in all the
circumstances. • Mere fact of reliance will not necessarily mean that inequity
requirement is met. An assessment of all circumstances of a
• Threats cannot amount to promissory estoppel. case would determine whether inequity exists.
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• Must it be in existence? Based on HUGHES case – not • Main requirement is the achievement of justice between
necessary. What is required is that there is alteration of parties. One party should not be in an advantageous
position/some action taken by the promisee, in reliance of
such representation made. position over the other due to the promise earlier given & to
be later retracted.
• Adopted with approval by Gopal Sri Ram JCA in BOUSTEAD’s
case where it was held: • THE POST CHASER’s case [1982] 1 All ER 19 Court applied
Detriment is not an essential ingredient to be prove b4 such test of inequity & not only on detriment. Held that not
prom. Estp can be invoked. necessary to show detriment is suffered to be inequitable,
Need to show it would be unjust to permit the promisor to but look at the conduct between the parties as to whether it
insist on his strict legal rights based on the circumstances & would be just to do so.
conduct of parties.
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• Visu Sinnadurai had also referred to this view in HONG • In cases of Broken Promises specifically in relation to land or
LEONG LEASING S/B v TAN KIM CHEONG [1994] 1 MLJ 177 property, may be possible to bring a claim to enforce a
broken promise, known as a "proprietary estoppel" claim.
where it was pointed out that the Australian judges has
• Claims often arise in a farming and/or family context
added a new dimension as to the usage of a prom. Estp.
• Aka the rule in DILLWYN v LLEWELLYN .
• In TAC CONSTRUCTION & TRADING v BENNES ENGINEERING
• Older than promissory estoppel.
BHD [1999] 2 CLJ 117 the court allowed the plf to rely on
• Permanent in its effect and also capable of operating
estoppel in his claim for progress sums to be paid to him by positively so as to confer a right of action.
the def.
• Operative to estop one party from enforcing his rights at law
• Possibility of using it as a sword in Malaysia? – Yes! in respect of land ; when it would be unconscionable for him
to do so.
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CASES
Cases
1. PASCOE v TURNER (1979) 2 AER 945 • DILLWYN V LLEWELYN [1862] All ER 384 is the classic
2. JONES v JONES (1977) 1 WLR 438 example of proprietary estoppel by encouragement. In that
case a father put his son into possession of land which he
3. INWARDS v BAKER (1965) 2 QB 29
purported to voluntarily convey to his son. The conveyance
4. GREASLEY v COOKE (1980) 3 AER 710 was ineffective. With his father’s assent and approval, the
5. CRABB v ARUN DISTRICT COUNCIL (1976) Ch. 179 son built and occupied a house on the land. After the
father’s death the son sought a declaration that he was the
6. PERWIRA HABIB BANK V PENGKALAN ENTERPRISE 1992 2 MLJ 35 owner of the land in equity and that the trustees of the
(DIY) land be ordered to convey the land to him absolutely. The
7. MOK DENG CHEE V YAP SEE HOI & OTHERS (DIY) House of Lords made these orders.
8. OOI AI SENG V CHAN LIN LAM (DIY)
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Cases
cases
• CRABB v ARUN DISTRICT COUNCIL (1976) Ch. 179 - Crabb bought 2 acres
from the estate of Alford. At the same times adjoining land was sold to the
Council.
• PASCOE v TURNER (1979) 2 AER 945
• Crabb had two access points. One through a formal easement. The other
• Pascoe left his wife for his housekeeper, Turner through the Council’s land.
• They lived together for 10 years after which he found another • Crabb later sold off part of his land which had the access through the
paramour. easement, believing he retained access through the Council’s land with the
Council’s approval.
• Pascoe had promised to gift the house to Turner
• The Council had erected a gate. Crabb padlocked it and this caused a
• Turner spent money on improvements dispute, with the Council replacing the gate with a fence, and blocking Crabb
• Court of Appeal finds that both estoppel by acquiescence and of any access to his land.
encouragement could be found. Also having regard to the way in • Crabb asked the Council to rebuild the gate but they demanded £3000. At
which she changed her position for the worse by reason of the trial Crabb lost on the basis that there was no agreement to bind the
acquiescence and encouragement of the legal owner. Council.
• Court of Appeal finds for Crabb, it does give rise to a cause of action.
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Cases Cases
• GREASLEY v COOKE (1980) 3 AER 710 – A case of estoppel by
• Proprietary estoppel by acquiescence was succinctly way of conduct & assurances.
explained by Cranworth LJ in RAMSDEN v DYSON (1866) LR • A young woman was employed as live in maid.
1 HL 129, at 140–1: Subsequently, she cohabits with her employer’s son who
• If a stranger begins to build on my land supposing it to be was aware of the relationship but did not object to it. On
his own, and I, perceiving his mistake, abstain from setting the death of her employer in 1948, she did not ask for
him right, and leave him to persevere in his error, a Court of payment of her wages because she believed and had been
equity will not allow me afterwards to assert my title to the encouraged by the son and members of his family to
land on which he had expended money on the supposition believe that for her services of taking care of the family she
that the land was his own. could regard the house as her home for the rest of her life.
1975, the son died, and the heirs brought the claim for
possession of the house against the ex-maid. She claimed
estoppel.
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CASES CONCLUSION
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• Specific performance
• Who can invoke equitable estoppel?
• Requires the Specific Relief Act 1950
• In what situation can one invoke equitable
estoppel? • Study on the nature of remedy and applicable sections
• Is estoppel a type of remedy? • Situations wherein are appropriate for the grant of SP or
otherwise
• Is there any exception or limitations to
equitable estoppel? • General conditions on the grant of a SP.
• What is the difference between promissory
and proprietary estoppel?
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References
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