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Related to Promissory estoppel: Detrimental reliance, Equitable estoppel

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 ?
In England, Canada, and Australia, promissory estoppel derives from
Yet, of these situations, only promissory estoppel is a true exception because the other situations are explained on consideration grounds.
Among other things, it said that promissory estoppel need not undermine preliminary contract negotiations because damages in a case in which terms had not been sufficient to constitute a contract might appropriately be limited to restoring a plaintiff to the position he was in before his detrimental reliance on the promise.
The doctrine of promissory estoppel is commonly explained as promoting the same purposes as the tort of misrepresentation: punishing or deterring those who mislead others to their detriment and compensating those who are misled.
The Court's stated rationale for not engaging in a balancing analysis was that promissory estoppel law applies generally to all activities, expressive and nonexpressive.
However she could recover if she could prove promissory estoppel.
COURT'S OPINION: The Superior Court of Connecticut, Judicial District of New Haven, held that the patient did not state a claim for medical malpractice and that the patient did not state a claim for promissory estoppel.
239) The opinion neither cites nor discusses Section 90, and the case cannot read as support for either expectancy or reliance as the measure of recovery in promissory estoppel actions.
X-Ray Center's complaint seeks damages of more than $36 million for breach of contract, promissory estoppel, and violation of California law.
Plaintiff alleges breach of contract and promissory estoppel.
On January 9, 2001, the court granted FAHC's motion for summary judgment on Nurse Dulude's breach of contract, promissory estoppel, and defamation claims.
Nurse Tremlett brought suit against Aurora Health Care on claims for breach of contract, promissory estoppel, intentional interference with employment relationship, and constructive discharge.