Complete Guide for Promissory Estoppel Contract Law in India

Author - Associate Kantika Mukherjee

The promissory estoppel doctrine is based on the principles of justice, fair play, as well as a good conscience.

The doctrine of promissory estoppel in administrative law is that when one individual with the intention of creating or affecting lawful relationship makes a promise with another individual and that individual acts on it, that promise must be binding for the individual who is making it. It would not be allowed to go back from its words. Because reverting from the words shall be against equity. It is not essential, towards attracting the applicability of the doctrine of promissory estoppel in contract law india is that the promisee acting in reliance on the promise, must suffer any detriment. The only thing essential is that the promisee must have altered his position in reliance on the promise.

The Indian Contracts Act 1872 deals with the topic Promissory Estoppel in contract law. A promise in future creates estoppel, the principle being that if a promise is made and it had been acted upon, the individual making the promise would now not be allowed to return out of it and the courts have to claim that the promise so made is venerated.

The principle of promissory estoppel  in administrative law stated in India, consequently in which one by his phrases or demeanour made to the alternative individual, a clean and unequivocal promise, who supposed that it would be acted upon through the individual towards whom the promise is made and it is far in fact so acted upon by the opposite, the promise may be binding making it and the individual might be not entitled to go lower back upon it, if it had been inequitable to allow the individual to achieve this having regards towards the dealings that have taken region amongst the individuals, and this would be so no matter whether or not there is any pre-existing courting amid the individuals or no longer. The doctrine was variously known as ‘promissory estoppel’, ‘equitable estoppel’, ‘quasi-estoppel’ and ‘new estoppel’

The principle of estoppel in contract law India is a rule of proof incorporated into section 115 of The Indian Evidence Act, 1872. “When an individual has, by his declaration, act or omission, intentionally prompted or accredited every other individual to accept as true with this type of element to be real and to act upon such notion, neither that individual nor his consultant would be allowed, in any shape or proceeding among himself and such individual or his representative, to disclaim the reality of that issue.”

In India, the courts have taken the initiative to lay importance on equity and justice and feature described the doctrine of promissory estoppel in India.

Salient Elements of promissory estoppel to prove

1. That there was a representation or promise relating to something being executed in the future.

2. That the representation or promise was intended to have an effect and is acted on for this reason.

3. The doctrine of promissory estoppel could not be invoked through the promisee unless he had suffered detriment or loses. All this is essential is that the individual maintaining the estoppel must have acted upon the promise given towards him.

Applicability of the Doctrine of Promissory Estoppels 

The doctrine of promissory estoppel in administrative law doesn’t apply towards statutes. In other words, an individual who makes a statement as to the existence of the provisions of a statute is not estoppel, consequently, from contending that the statutory provision is dissimilar from what he has previously stated. An individual may not represent the true status of a statute or law, however, the other individual who depends on such a representation is at liberty to find out the position of law on the matter and as the doctrine says, ignorance of the law is no excuse. So an individual cannot take recourse towards the defense of estoppel to plead that an incorrect representation was made regarding the provisions of a statute or law. The doctrine of estoppel cannot override the provisions of a statute. Where a statute enforces a duty by positive action, estoppel cannot stop it. The doctrine cannot also be raised to prevent the legislative as well as executive bodies of the Government from performing their responsibilities.

No Estoppel against a Minor

There are no estoppels against a minor. The infant is not stopped from setting up the defense of infancy. The reason is very simple. There could be no estoppel against a statute. The policy of the law of contract is to protect individuals below age from contractual liability as well as naturally the doctrine of estoppel cannot be utilized to defeat that policy. Therefore, in a case before the Bombay High Court, Beaumont CJ settled by saying:

“The Court is of the view that where an infant represents fraudulently or otherwise that he is of age and thus induces another person into contract with him then in an action founded on the contract the infant is not stopped from setting up infancy”.