Estoppel contracts
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The courts have held that in the absence of the essentials of a contract (namely; two or more parties, an intention to create legal relations, an agreement and consideration), a contract could still come into existence between parties if they have so conducted themselves as to a common assumption, in fact or law, that there is a contract and that it would be wrong or unreasonable for the parties thereafter to deny the existence of such a contract. | The courts have held that in the absence of the essentials of a contract (namely; two or more parties, an intention to create legal relations, an agreement and consideration), a contract could still come into existence between parties if they have so conducted themselves as to a common assumption, in fact or law, that there is a contract and that it would be wrong or unreasonable for the parties thereafter to deny the existence of such a contract. | ||
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*Modifying clauses in standard forms of contract. | *Modifying clauses in standard forms of contract. | ||
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Revision as of 12:47, 12 July 2014
To help develop this article, click 'Edit this article' above.
The courts have held that in the absence of the essentials of a contract (namely; two or more parties, an intention to create legal relations, an agreement and consideration), a contract could still come into existence between parties if they have so conducted themselves as to a common assumption, in fact or law, that there is a contract and that it would be wrong or unreasonable for the parties thereafter to deny the existence of such a contract.
Estoppel contracts have received a mixed reception from the courts, finding favour in G. Percy Trentham v Architral Luxfer, and in Mitsui Babock Energy Ltd v John Brown Engineering Ltd, but being rejected in J. Murphy & Sons Ltd v ABB Daimler Benz.
Find out more
Related articles on Designing Buildings Wiki:
- Collateral Warranty.
- Contract.
- Contract conditions.
- Contract v tort.
- Contracts under seal.
- Essentials of a contract.
- Modifying clauses in standard forms of contract.
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