What is equitable estoppel?

Equitable estoppel is a legal term used in the state of California to describe a situation in which one party is stopped or barred from bringing a claim or taking a particular action against another due to the reliance on certain actions or promises made by the other party. It is a legal doctrine that applies in contract law as well as other areas of civil law. For example, if Party A tells Party B that they will sign a contract on a certain date, and Party B relies on this promise by taking certain actions (such as incurring costs), then Party A may be estopped from going back on their promise. This means that Party A would be legally bound to fulfill the promise they made, even if the contract is not signed by the original agreed-upon date. Equitable estoppel can also apply in a variety of other situations. It can be used to prevent one party from denying or contradicting something in a contract. It can also be used to prevent a party from taking advantage of a situation that would be to the detriment of the other party. Equitable estoppel helps to prevent one party from unfairly taking advantage of the other, and promotes reasonable and fair contract negotiations.

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