Legal Dictionary
Estoppel
Definition
The principle that precludes a person from asserting something contrary to what is implied by a previous action or statement.
Deep Dive
Estoppel is a legal principle that prevents a person from asserting something contrary to what is implied by a previous action, statement, or representation, especially when another party has reasonably relied on that prior conduct to their detriment. It acts as a shield, not a sword, preventing unfairness by ensuring consistency in legal dealings and upholding the reasonable expectations created by one's own words or actions.
Examples & Use Cases
- 1A company verbally assures a potential supplier that they will receive a contract for a large order, and the supplier invests heavily in new equipment based on this assurance. The company may be estopped from denying the contract later.
- 2A property owner implicitly allows a neighbor to use a portion of their land for years without objection; the owner may be estopped from suddenly blocking access without reasonable notice.
- 3After a court has ruled that a specific clause in a contract is valid in one dispute, a party may be estopped from re-arguing the invalidity of that same clause in a subsequent, related lawsuit.
Related Terms
Promissory EstoppelWaiverRes JudicataDetrimental Reliance