Estoppel as a Rule of Evidence

INTRODUCTION: ESTOPPEL AS A RULE OF EVIDENCE

Estoppel is a legal doctrine recognized both at common law and in equity in various forms. It is meant to complement the requirement of consideration in contract law. In general it protects a party who would suffer detriment if:

1. The defendant has done or said something to induce an expectation

2. The plaintiff relied (reasonably) on the expectation…

3. ...and would suffer detriment if that expectation were false.

Estoppel is generally only a defence that prevents a representer from enforcing legal rights, or from relying on a set of facts that would give rise to enforceable rights (e.g. words said or actions performed) if that enforcement or reliance would be unfair to the representee. Because its effect is to defeat generally enforceable legal rights, the scope of the remedy is often limited.

Estoppel is closely related to the doctrines of waiver, variation, and election and is applied in many areas of law, including insurance, banking, employment, international trade, etc.

For an example of estoppel, consider the case of a debtor and a creditor. The creditor might unofficially inform the debtor that the debt has been forgiven. Even if the original contract was not terminated, the creditor may be estopped from collecting the debt if the creditor changes its position later. It would be unfair to allow the creditor to change their mind in light of the unofficial agreement he made with the debtor beforehand. In the same way, a landlord might inform a tenant that rent has been reduced, for example, if there was construction or a lapse in utility services. If the tenant relies on this notice, the landlord could be estopped from collecting the full rent.

Doctrine of Estoppel is embodied in S.115 of Indian Evidence Act

Sec.115. Estoppel - When one person has by his declaration, act or omission, intentionally caused or permitted another person to believe a thing to be true and to act upon...