What is the doctrine of equitable estoppel in contract law?
Equitable estoppel is a doctrine in contract law that prevents a party from backed out of a contract due to their own actions or statements. This doctrine states that if one party makes a representation or promise that is relied upon by another, they cannot then turn around and go against that statement or promise due to their self-interest. This is especially important in Texas where contract law is strictly enforced. An example of this is if one party promises another that they will pay for the completion of services and the other party reasonably relies on this promise and begins to provide the services, that first party cannot then back out of the deal without liability. Equitable estoppel also applies when parties say or agree to something contradictory to the terms of an agreement, like if someone says they will do something in the contract but then later on says they won’t, this could be used to estop them from denying their promise. Moreover, this doctrine also applies if one party wrongfully induces another to act in a way that is contrary to the contract. For instance, if one party wrongfully conveys information to the other that may get them to act in a way that goes against the contract, this would be a valid defense against the other party if they try to back out of the agreement. This doctrine is important for upholding contracts in Texas and it is a crucial part of contract law.
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