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Promissory estoppel - Article Example
The Books Ltd, entered into a contractual agreement with Print UK Ltd for printing and binding a book. The agreed upon amount was '29, 000, on completion of the work. Subsequently, Print UK suffered a significant diminution in its workforce. The Print UK offered its remaining workers, '500 as a bonus, if they would work extra hours till the completion of the Books Ltd, contract…
Moreover, in the absence of the extra efforts put in by the workers, the Print UK Ltd would not have been in a position to release the book on the agreed upon date. Failure to have released the book would have proved detrimental to the profits of the Print UK Ltd. This undesirable circumstance had been thwarted, solely on account of the extra work put in by its workers.
Promissory estoppel is an important remedy, provided by the law, to an injured party in a contract. It enables the plaintiff to sue the promisor, if the former acts on the promise of the promisor, who subsequently, fails to fulfil the promised benefit to the former1.
Promissory estoppel, also known as detrimental reliance, is that which the promisor can be reasonably expected to initiate some action or forbearance by either the promisee or a third party. If injustice can be prevented only by the performance of a promise, then such promise will be binding. Under this precept, a promisor who influences a promisee to significantly change his stance is disallowed from refusing the binding nature of the promise, for the reason that there had been no consideration from the promisee2.
In the realm of equity, the notion of promissory estoppel binds the parties to the agreements; despite the l ...