ABSTRACT

Promissory estoppel is one of the most controversial areas of contract law. In the English case of Central London Property Trust v High Trees House,32 Lord Denning explained the doctrine of promissory estoppel as follows:

The principle applies in the South Pacific region, subject to restrictions imposed by subsequent English decisions. Lord Denning’s wide definition must now be read subject to the following rules:

Promissory estoppel cannot arise in a vacuum. It can only arise where there is an existing relationship between the parties. Normally this will be a contract. Thus, consideration will be a ‘cardinal necessity’ of the formation of the original relationship.33