When it comes to business, one must understand and be aware of the various legal terms associated with it. Equitable estoppel is one of those terms that is essential to know in order to protect your business and your rights. In this article, we will present a comprehensive overview of equitable estoppel and how it could potentially affect your business.
What Is Equitable Estoppel?
Equitable estoppel is a legal doctrine used to prevent one party from going back on their word or promises either through their actions or omissions. In essence, it is a means of legally binding a contractual consequence if one party acts in a way that is inconsistent with statements that have previously been made. Put simply, equitable estoppel prevents a party from turning around and claiming something to the contrary that would be detrimental to the other party.
Examples of Equitable Estoppel in Action
Equitable estoppel can be used in a variety of situations and can be triggered by one party’s actions or inactions. Here are some examples of situations where equitable estoppel may play a role:
- If a landowner makes a statement that is relied upon by another party such as a potential tenant, equitable estoppel would come into play to prevent the landowner from later changing the terms of the agreement or refusing to honor it.
- If a party introduces a witness who is later found to be an unreliable witness, equitable estoppel could be used to prevent the party from calling the witness for a future trial.
- If a party enters into a contract with a third party, but does not live up to the agreement, equitable estoppel could be used to prevent them from denying the existence of the contract in the future.
How Could Equitable Estoppel Affect Your Business?
Equitable estoppel is an important legal concept for business owners to remember and understand. It is essential for businesses to keep a close eye on their dealings and agreements to ensure that nothing is said or done that could later be used against them. If a business says or does something that later conflicts with their original statement, this could lead to equitable estoppel being triggered. Businesses must be aware of all legal implications in order to protect themselves from potential liabilities.
Equitable estoppel is an important legal concept that should be taken seriously by businesses. By understanding the definition and potential implications of equitable estoppel, businesses can ensure that their legal rights are properly protected in the event that they are faced with these kinds of situations in the future.