Describe Equitable Estoppel

Question

Describe Equitable Estoppel (Promissory Estoppel)?

Answer 1

Under the principle of reasonable estoppels, courts have been presents equitable relief when one person asserts certain facts as true or makes unjustified promises as well as an additional relies on the statement or gratuitous promise to his/her disadvantage. The producer of the statement/promise will be estopped or prevented from denying the truth of the original statement or claiming that he or she was not bound by the promise despite the fact that consideration has not flowed.

Recent cases have raised the question of whether Canadian courts are moving towards the American principle of injurious reliance as a reason of action that permits a wounded party to force the promissory to execute the guarantee. In 2008, let us take an example, the Ontario Superior Court upheld an employee’s claim for a promised wage increase on a number of grounds including promissory estoppel.