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Estoppel by convention in English law (also known as estoppel by agreement) occurs where two parties negotiate or operate a contract but make a mistake. If they share an assumption, [ 37 ] belief, or understanding of the contract's interpretation or legal effect, then they are bound by it, if: [ citation needed ]
Estoppel forms part of the rules of equity, which were originally administered in the Chancery courts. Estoppel in English law is a doctrine that may be used in certain situations to prevent a person from relying upon certain rights, or upon a set of facts (e.g. words said or actions performed) which is different from an earlier set of facts.
The doctrine of direct estoppel prevents a party to litigation from relitigating an issue that was decided against that party. [1] Direct estoppel and collateral estoppel are part of the larger doctrine of issue preclusion. [2] Issue preclusion means that a party cannot litigate the same issue in a subsequent action. [3]
Collateral estoppel (CE), known in modern terminology as issue preclusion, is a common law estoppel doctrine that prevents a person from relitigating an issue. One summary is that, "once a court has decided an issue of fact or law necessary to its judgment, that decision ... preclude[s] relitigation of the issue in a suit on a different cause of action involving a party to the first case". [1]
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An Estoppel Certificate (or Estoppel Letter) is a document commonly used in due diligence in real estate and mortgage activities. It is based on estoppel, the legal principle that prevents or estops someone from claiming a change in the agreement later on. [1] It is used in a variety of countries for commercial and residential transactions.
De facto corporation and corporation by estoppel are both terms that are used by courts in most common law jurisdictions to describe circumstances in which a business organization that has failed to become a de jure corporation (a corporation by law) will nonetheless be treated as a corporation, thereby shielding shareholders from liability. [1]
Combe v Combe [1951] 2 KB 215 is a famous English contract law case on promissory estoppel. An ex-wife tried to take advantage of the principle that had been reintroduced in the High Trees case to enforce her husband's promise to give her maintenance. The Court held that promissory estoppel could not be applied.