Comparative Legal System - Essay Example

Promissory estoppel brings principles of fairness and equity into the equation for the first time and lowers the bar to allow more informal arrangements to have force of law. While it would an overstatement to say that estoppel undermines common law rules of consideration—because courts have discretion whether to apply the doctrine or not—it certainly alters the significance of consideration in contract-making. The doctrine of promissory estoppel prevents a party in a legal relationship from withdrawing a promise made to another party if the latter has relied on that promise and acted upon it to his or her detriment.

This doctrine was resurrected after many decades in obscurity by Lord Denning in Central London Property Trust Ltd v. High Trees House Ltd [1947] KB 130. In this case High Trees House leased a block of flats for a rate £2500 per year from Central London Property Trust. Because of the war and the German bombing of London it was very hard to find people to live in the flats and High Trees was losing a lot of money. In 1940, the parties made an agreement in writing to reduce the rent by half. The period of time that this reduction was to last, however, was not clear.

Over the next five years, High Trees paid the reduced rate. Then, in 1945, the flats were more popular and full again. There was a disagreement between the two parties and Central London sued for payment of the full rental costs. In his ruling, Lord Denning wrote: I am satisfied that a promise such as that to which I have referred is binding and the only question remaining for my consideration is the scope of the promise in the present case. I am satisfied on all the evidence that the promise here was that the ground rent should be reduced to 1,250l.

a year as a temporary expedient while the block of flats was not fully, or substantially fully let, owing to the conditions prevailing . . . I am satisfied that the promise was understood by all parties only to apply under the