Contracts issues and Ratios

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CONTRACTS-Issues-and-Ratios

D. & C. Builders Ltd. v. Rees

Issues
Was the settlement binding on the Plaintiff?
Ratio
Promissory estoppel is not applicable where the promise is procured by intimidation.

There must be a “true accord”

A party seeking equity, must do equity.

The Reliance

W.J. Alan & Co. v. El Nasr Export & Imports Co

Issues
Was the Buyer bound to pay the Seller in the currency of the contract?
Ratio
If one party by his conduct leads the other to believe that the strict rights in a contract will not be insisted upon, and the other party acts upon that representation, then they will not afterwards be allowed to insist on those strict rights when it would be inequitable to do so.

The party acting upon the conduct does not have to act to their detriment, just to act differently from what he otherwise would have done.

The party giving the waiver, can on occasion, revert to that party’s strict legal rights by giving reasonable notice.

Société Italo-Belge Pour le Commerce et l'Industrie S.A. v Palm and Vegetable Oils (Malaysia) SDN BHD; The Post Chaser

Issues
Did the Buyer represent that it was waiving its right to reject the Seller’s ownership documents?

Was there sufficient reliance on the representation to give rise to promissory estoppel?

Ratio
To establish inequity, it is not necessary to show detriment. In fact, the representee may benefit from the representation, yet it may still be inequitable for the representor to enforce its legal rights.

Sword or Shield

Combe v. Combe

Issues
Is the husband’s promise to pay his wife enforceable?

Was there sufficient consideration the support the promise?

Ratio
Promissory estoppel does not create new causes of action where none existed before.

Promissory estoppel cannot be used be used to establish a claim (Sword).

It can only be used as a defence to a claim. (Shield)

Petridis v. Shabinsky

Issues
Did the Landlord waive his right to enforce the deadline to exercise the option to renew?
Ratio
While promissory estoppel cannot be used as a sword, the doctrine of waiver can.

People with rights are entitled to waive or suspend those rights and there may come a time in the course of that waiver or suspension when the rights are either lost or are not permitted to be enforced strictly without some notice to the other side.

M. (N.) v. A. (A.T.)

Issues
Did the trial judge err in refusing to enforce the promise on which Ms. A relied upon to her detriment?
Ratio
Two requirements of equitable estoppel:
1. The plaintiff assumed that a particular legal relationship then existed between the plaintiff and the defendant or expected that a particular legal relationship would exist between them and in the latter case that the defendant would not be free to withdraw from the expected legal relationship
2. The defendant has induced the plaintiff to adopt that assumption or expectation

A necessary element of promissory estoppel is the promisee’s assumption or expectation of a legal relationship.

This case was in BC not necessarily something on Ontario

Lecture 9

Intention to Create Legal Relations

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