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Related to estopped: estoppel certificate

Agency by Estoppel

A situation in which a reasonable person may assume agency agreement exists when it does not. For example, if a person or company allows another person or company to use proprietary letterhead to send out correspondence, agency by estoppel may exist. Because the agency is assumed, the (presumed) principal may be legally bound by the agent's actions.


A doctrine that stops one from denying facts or taking a course of action because it would be unfair under the circumstances.It may be because someone else relied on former statements regarding the facts or because someone else relied upon a situation allowed to exist by a party, so that the party cannot now be allowed to change that situation.The concept commonly arises in three situations:

1. Before the sale of an income-producing property, the tenants sign estoppel certificates acknowledging they have no claims against the landlord, no defenses to any of the terms or conditions of their lease, and no outside or “side” agreements varying the terms of the lease. After the sale, the tenant cannot claim otherwise, even if all parties agree that there has been a wrong done to the tenant by the prior landlord and the tenant would otherwise be able to cancel the lease if it were not for the estoppel certificate.

2. A subdivision with restrictive covenants grows lax in the enforcement of them and per- mits many violations over the years regarding, for example, parking boats and motor homes in driveways. If one buys a home in the subdivision and keeps a motor home in the driveway, the principle of estoppel will prevent the homeowners association from suddenly deciding to enforce that particular covenant.

3. A government employee tells someone one thing, and it later turns out to be wrong. The citizen has already taken action on the incorrect information. In most circumstances, courts will not allow estoppel against a government or government agency.

References in periodicals archive ?
The person attempting to procure this service is estopped from asserting his own rights, to a proportionate extent.
during the opposition proceeding, a party is estopped from raising
So, the argument goes, by granting an entrapment defense, the judge is saying that the government is estopped from convicting.
A] borrower may be estopped from interposing a usury defense when, through a special relationship with the lender, the borrower induces reliance on the legality of the transaction.
at 75 (stating that apparent authority has been defined as the `"authority which the principal holds the agent out as possessing or which he permits the agent to represent that he possesses and which the principal is estopped to deny"' (citing 2 Corpus Juris, 570; Small v.
Just as important, if your initial victory is followed by a string of similar lawsuits, and you ultimately decide that the only way out of the mess is to fashion a global settlement, you may be estopped by your earlier, successful arguments against class certification from asserting that there are now sufficient grounds for certifying a class for settlement purposes.
In addition, EPA was collaterally estopped from claiming that its action was required by the 1990 Amendments to the CAA.
When a civil case is litigated first, a defendant who prevails will be able to use Ashe to shield himself from an abusive criminal suit: If the state could not prove the drug conduct by a preponderance-of-the-evidence standard, it surely should be estopped from claiming the conduct occurred beyond reasonable doubt.
that an employer may not be estopped from firing an employee based upon a promise, even when reliance is demonstrated.
Additionally, if it is determined that the carrier acted in bad faith in its handling of the claim, punitive damages may be awarded and the carrier may even be estopped to use a coverage defense that might have otherwise been available.
If the taxpayer is found guilty of violating IRC Section 7201, he is estopped from denying guilt under IRC 6653(b) for civil fraud for the same tax years.
Verbose: "Extension of the escalation payment period is permissible only within the days attendant the grace period in compliance with the citation relevant to the tenant remedies so we are estopped from acquiescing to an extension.