What is an estoppel in finance?

What is an estoppel in finance?

An estoppel is a legal means of preventing a party from taking action that will negate some previous action taken. Estoppel theories are centered around both common law and equity. For example, a lender and borrower are in court because of an unpaid debt. The lender says that he will pardon 50% of the debt.

What is estoppel principle?

Estoppel is a legal principle that prevents someone from arguing something or asserting a right that contradicts what they previously said or agreed to by law. It is meant to prevent people from being unjustly wronged by the inconsistencies of another person’s words or actions.

What is an example of the doctrine of estoppel?

If the court has established in a criminal trial that someone is guilty of murder, the legal doctrine preventing the murderer from denying his guilt in a civil trial is an example of estoppel.

Which courts does the estoppel principle come from?

Estoppel forms part of the rules of equity, which were originally administered in the Chancery courts.

What are the types of estoppel?

The most common types of estoppel are:

• Estoppel by representation.
• Promissory estoppel (also known as equitable forbearance)
• Proprietary estoppel.
• Estoppel by convention.
• Estoppel by deed.
• Contractual estoppel.
• Waiver by estoppel.

Which statement defines estoppel?

Which statement defines estoppel? Estoppel prevents one from denying a fact, if the fact was admitted to be true by a previous action – This is the legal definition of estoppel. The intentional misrepresentation of a material fact defines Fraud.

Is estoppel common law?

Common law estoppel is a legal doctrine that may come into play in circumstances where parties to an agreement have departed from the strict terms of that agreement but have not entered into a new contract to give effect to their new arrangement.

What does estoppel in insurance mean?

Estoppel — a legal doctrine restraining a party from contradicting its own previous actions if those actions have been reasonably relied on by another party.