Promissory Estoppel Q&A

These are the Contract Law Promissory Estoppel Questions and Answers. Many examples of answers are provided for the kind of questions that may appear on the exam or in your coursework. The concepts in Pinnel's Case and how they applied to the guidelines established in Central London Property Trust Ltd v. High Trees House Ltd are covered in the answers. In addition to helping students grasp how to use the Equitable theory of promissory estoppel while answering essay questions and problem problems, the solutions educate students how to offer advice in an approachable manner.

Question 1

“A promise to accept a smaller sum [in satisfaction of a greater debt], if acted upon, is binding notwithstanding the absence of consideration” Per Denning J in Central London Property Trust Ltd v High Trees House Ltd [1947] KB 130.

Explain the statement with reference to consideration and the doctrine of promissory estoppel. To what extent does this statement represent an accurate view of the law?

Question 2

“The precise extent of the doctrine of promissory estoppel is still unclear.”  Consider when the doctrine of promissory estoppel will be available and discuss what limits there are on its application.

Question 3

The UK introduced National lockdowns (late March 2020 - June 2020, January 2021 – July 2021) and restricted gatherings and movements of all but essential workers, closure of all hospitality venues and non-essential shops, closed schools and encouraged working from home. In early March 2020, the landlord Charles of a private gated estate of flats entered a lease with David at a monthly rent of £2,500. Due to the outbreak of COVID and the subsequent lockdown, David was made redundant and returned to studying. David was unable to afford the property and in late March 2020, the contract was varied to a reduced rent of £1,500 until he was able to find a new job. Nothing was expressed as to how long this arrangement was to last. In January 2021, David abandoned his studies and found a new job. In July 2021 the landlord Charles wrote to David and asked for the full rent of £2,500 and full arrears.

Advise David.