ABSTRACT

The controversy as to whether simple reliance or detrimental reliance is a requirement for the purposes of the different varieties of estoppel is also a matter which impinges on the question whether the promisee’s expectation interest is protected or not. If detrimental reliance is not a requirement in cases of promissory estoppel, as some of the relevant dicta suggest, it seems likely that the interest protected is the promisee’s expectation of performance of the promise made by the other party. However, if the view expressed by the Australian High Court in Waltons Stores (Interstate) Ltd v Maher correctly states the guiding principle, detriment to the promisee is a requirement, but the promisor’s promise may be enforced only to the extent necessary to avoid the unconscionable and detrimental effects of a refusal by the promisor to honour his promise. Here, it is arguable that the reason for enforcing the promise is that the promisee is entitled to be protected against the denial of a future right.