Critically Analyse the Extent to Which the Rules Relating to Promissory Estoppel Allow Effect to Be Given to the ‘Reasonable Expectations of Honest Men’ Rather Than the Sanctity of Contract.

INTRODUCTION

The basic position of English law when establishing a contract requires four elements, offer, acceptance, consideration and the intent to create legal relations. A contract, comprising the four elements adequately satisfies the objective standard of reasonable expectations of honest men and the sanctity of contract, which is the general idea that once parties duly enter into a contract, they must honour their obligations under that contract. However, there are situations where contract law is unable to safeguard both concepts. A variation in contract law without consideration, although intended by all parties to have legal effect is essentially not legally binding in the eyes of contract law. This is when the equitable doctrine of promissory estoppel comes in to fill the gap in order to uphold the reasonable expectations of honest men.

This essay aims to analyse the three requirements of promissory estoppel and explains the role it plays in upholding the reasonable expectations of honest man. But, by doing so, it will inevitably undermines the sanctity of contract as contracts involving promissory estoppel lack the consideration element of a contract. Therefore, limitations of the doctrine and it being suspensory or extinctive in nature will be discussed in attempt to preserve the sanctity of contract. Lastly, it aims to examine any possible future developments of the doctrine.

BODY

The first requirement of promissory estoppel is that the promisor must give a clear and unambiguous statement that he does not intend to enforce his legal rights. This promise may be express or implied. Once a promise is made as to a variation of a contract, it is reasonable for the promisee to expect that the promise will be followed through with contractual effect. However, the lack of consideration by both parties deemed the contract invalid according to the principles of contract law. However, declaring the variation invalid would be to say that it is lawful...