What is the doctrine of equitable estoppel in contract law?
The doctrine of equitable estoppel in contract law is a legal principle used to prevent a person from denying something that they previously agreed to or from relying on a legal right that goes against what was previously said. It functions in cases where one party makes a misrepresentation, or otherwise acts in a way that creates a legitimate expectation for the other party, and then attempts to depart from that expectation. This doctrine is commonly used in California contract law as a way to ensure fairness in business transactions. Essentially, the doctrine of equitable estoppel functions as a shield against one party being unfairly taken advantage of by the other. For example, if Party A enters into a contract with Party B and Party B makes a promise to Party A that they later deny or try to retract, then Party A may be able to establish a legal claim against Party B using the doctrine of equitable estoppel. The doctrine of equitable estoppel is a crucial part of contract law in California and other states, providing an additional level of protection for parties involved in contracts. By preventing one party from denying something that was previously agreed to, this doctrine helps ensure that individuals and businesses can count on their contracts to actually mean something.
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