CONTRACT LAW Essay Example | Topics and Well Written Essays - 2000 words - 1

CONTRACT LAW - Essay Example Promissory estoppel is important in the sense that it can be used as a defense by a party to prevent another from turning back from the concession he or she has given and enforce his or her rights against the recipient of the concession. In order for promissory estoppel to arise, there must be a clear and unequivocal representation made by the parties that a right will not be enforced against the other. According to the court in the case of Woodhouse Israel Cocoa v Nigerian Produce Marketing Company2, there is a need for the party or the parties making the concession to inform the other party or parties regarding the concession made. The parties must clearly state the rights being waived or the favors which are extended to the other parties to create a clear representation. In other words, the concession made must be clearly communicated and understood by both parties otherwise said concession may not be considered as validly made. As decided by the court in the case of Baird Textiles holdings ltd V Marks & spencer plc3, where the concession made is ambivalent and insufficient to establish a clear representation, the party or parties to whom the concession was made may not use the doctrine of promissory estoppel as a defense. Is there a need to make an express concession to in order for the parties to make use of the doctrine of promissory estoppel? Apparently, the court does not require an express concession from the parties but rather it only requires that the concession must be unequivocal and sufficiently clear to be understood by the parties. According to the decision of the court in the case of Hughes V Metropolitan Railway Co.4, an implied representation can be a ground for promissory estoppel. Thus, if the acts of one party impliedly tell the other party that it is granting a favor to the other and the party who had been impliedly