Limits

This chapter considers the limits to contractual estoppel. It should come as no surprise that they are in essence the same that apply to contracts generally. Contractual estoppel is a creature of contract; contract at once provides the foundation for it and determines its boundaries. The chapter also considers such of those matters as have been the subject of decision, discussion or argument in decided cases involving contractual estoppel. A contract that is itself valid may raise contractual estoppel to resolve issues that affect the validity of a different contract. In Credit Suisse International v Stichting Vestia Groep an admittedly valid Master Agreement contained a warranty that a party had capacity to enter into subsequent transactions. A warranty in a valid and binding loan agreement that separately made security instruments were valid, raised contractual estoppel in Standard Chartered Bank (Hong Kong) Ltd v Independent Power Tanzania Ltd.