Reasonable Reliance in Estoppel by Conduct
نویسندگان
چکیده
The basis on which an estoppel by conduct is established is a keenly debated question. Theories based on promise and conscience have recently been propounded in the literature: Michael Pratt has argued that equitable estoppel must be based on promise,* 1 while Michael Spence has argued that the central criterion of estoppel by conduct is unconscionable conduct.2 In advancing these promise and conscience-based theories, both Pratt and Spence have questioned the importance of establishing reasonable reliance, which is at the heart of the reliance-based model of estoppel. The aim of this article is to explore the nature of the requirement of reasonable reliance, and the role it plays in common law and equitable estoppel. This article helps to define the reliance-based theory of estoppel, which is based on the idea that the founding principle of estoppel by conduct, and the essential element in the establishment of an estoppel, is reasonable reliance. In order to consider the foundation of estoppel by conduct, it is necessary to start with the elements by which an estoppel is established.3 An estoppel by conduct arises where one person (the representor) induces another (the representee) to adopt and act upon an assumption of fact (common law estoppel) or an assumption as to the future conduct of the representor (equitable
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