What Is Promissory Estoppel? Explained in 60 Seconds.
Promissory estoppel is a legal rule that can make a promise binding even without a contract. It usually applies when someone makes a clear promise, another person reasonably relies on it and changes their position, and letting the promise-maker go back on it would be unfair.
Key takeaways
- Someone must have made a clear promise.
- You must have reasonably relied on the promise and changed your position.
- Letting the person go back on their promise would be unfair.
What this video covers
The video explains promissory estoppel: a legal rule that can make a promise binding even without a contract. It introduces a landlord who promises to halve a lawyer’s rent without a contract or signature. Relying on that promise, the lawyer spends his savings on a hot tub for his goose. The landlord then wants the full rent back. Following the example, the video sets out three conditions. First, someone must have made a clear promise. Second, the other person must have reasonably relied on that promise and changed their position. Third, allowing the promise-maker to go back on their word would be unfair. When these conditions apply, a court can stop, or “estop,” the person from going back on the promise. The video connects the example to Central London Property Trust v High Trees House (1947). In that case, a landlord agreed to reduce rent during the war and could not later claim the full rent for that period. The recap brings these points together while noting that promissory estoppel works differently from country to country. The video provides general information about common-law concepts, not legal advice, and recommends speaking to a qualified lawyer about your situation.
