ESTOPPEL
Estoppel is a judicial device whereby a court may prevent or "estop" a person
from making assertions or from going back on their word. The person barred
from doing so is said to be "estopped". Estoppel may prevent someone from
bringing a particular claim. Estoppel is a legal principle that prevents someone
from arguing something or asserting a right that contradicts what they
previously agreed to or said. Put simply, estoppel prevents one person from
contradicting an action or statement from the past.
Estoppel is meant to prevent people from being unjustly wronged by the
inconsistencies of another person's words or actions. Some of the most
common forms of estoppel include collateral estoppel and promissory estoppel.
The principle of estoppel doesn’t apply to minors. As per this principle, when
one person intentionally causes or permits another person to believe a thing to
be true and to act upon such belief, neither he nor his representatives can
deny the truth of that thing in any suit or proceeding between himself and
such person or representative.
However, the question arises as to whether the law of estoppel can be invoked
against minors. In the case of J a g a r Nath Singh v. Lalta Prasad, the court held
that the law of estoppel cannot be used to validate a void agreement.
The Madras High Court, in Vaikuntarama Pillai v. Authimoolam Chettiar,
reaffirmed that the principle of estoppel cannot override the provision that
minors are incapable of contracting and therefore not responsible for any
liabilities. Similarly, in Gaganan d Singh v. Rameshwar Singh, the Patna High
Court agreed with this principle.
Limitations on the Doctrine of Promissory Estoppel:
Pre-existing Legal Relationship: The doctrine of promissory estoppel
applies only when there is an existing legal relationship between the
parties, and it is modified or varied. This means a new contract must be
supported by consideration.
Alteration of Position: The essence or beauty of a bilateral executory
contract is that it comes into existence the moment promises are
exchanged forming consideration for each other. But the doctrine of
promissory estoppel applies only when the party who wants to enforce a
promise has altered its position by relying upon it.
Inequitable to Retract: Since the origin of the doctrine of promissory
estoppel lies in equity, it would apply only in those cases where it would
be inequitable for the promisor to go back on his promise. If that is not
the case, the doctrine does not apply.
Shield not a Sword: The very nature of the doctrine of promissory
estoppel is that it can be used only to save a party from the effect of a
promise which was modified by the promisor. It cannot be used to give
rise to a claim. Hence, it can only be used as tool of defence and not of
attack.
Suspensory: It is considered that the doctrine can have only suspensory
effect on the obligations created under the original contract and cannot
extinguish them.
Position of Minors in Case of Doctrine of Promissory Estoppel
The minor is not stopped from setting up the defence of minority. The reason is
there can be no estoppels against a statue. The policy of the law of contract is
to protect persons below age from contractual liability and naturally the
doctrine of estoppels cannot be used to defeat that policy.
