Promissory Estoppel

• Published date: 04 October 2021
• Law Firm: Vincent Young
• Author: Mr Mike Ellis

Commercial parties tend to operate in fluid and fast paced environments. Frequently formal contracts are entered into or amended late or possibly not at all. Time constrains, cost constraints or simply oversight are often to blame.

Failing to record deals in contracts puts commercial parties at risk. One party may decide to walk away from the deal after the other party has already kept their side of the deal. With no contract/contract amendment in place, the other party is in a weak legal position.

One of the ways in which lawyers and judges attempt to grapple with this commercial reality is by the doctrine of promissory estoppel. Promissory estoppel prevents a person from unconscionably departing from a representation, promise or assurance made by the...