lecture recording on 04 December 2024 at 19.08.13 PM

Case Summary: Sue and Bob's Agreement

Parties Involved

• Sue: The buyer who has partially built on the land.

• Bob: The seller who initially agreed to sell the land to Sue.

Agreement Details

• Sue and Bob reached an oral agreement for the sale of land.

• Sue made a 10% deposit of the agreed purchase price.

• Bob permitted Sue to begin construction on the land while the agreement was pending.

Dispute

• Bob learns that he can sell the land for 50% more to another buyer.

• He attempts to invoke the statute of frauds, claiming the absence of a written contract nullifies the agreement with Sue.

Legal Implications

• A court is likely to enforce the agreement based on:

  • Partial payment made by Sue (10% deposit).

  • Improvements made to the land by Sue, indicating her commitment to the contract.

Promissory Estoppel

• Definition: A legal principle preventing a party from withdrawing a promise made when the other party has reasonably relied on that promise to their detriment.

Application of Promissory Estoppel

• Used in situations where there is no formal contract in place.

• It serves as a means to enforce obligations that arise based on the parties' conduct or promises rather than a written agreement.

• Promissory estoppel can compel parties to adhere to the terms implied by their actions despite the lack of formal agreements.