What is equitable estoppel?

Equitable estoppel is a legal doctrine that is used when one party has given a representation, either verbally or in writing, that can be reasonably relied upon by another party to the detriment of the relying party. It is used in contract law in North Carolina as a way to prevent one party from going back on a promise that was made. Equitable estoppel prevents a party from denying a fact or legal right that was earlier accepted as true or relied upon by another. For example, if a landlord in North Carolina agrees to waive a security deposit and the tenant moves in, then the tenant can use equitable estoppel if the landlord later decides they want the deposit. Equitable estoppel also protects a party from changing the terms of a contract without the other party’s knowledge or consent. For instance, if a contractor agrees to perform a job for a fixed fee, then that contractor cannot increase the fee without giving the customer prior notice and an opportunity to cancel the contract without penalty. In North Carolina, the doctrine of equitable estoppel is used to protect parties from unjustifiable harm that is caused by another party not living up to their promise. It is a form of justice that is applied when a party trusts another person and relies on what was said or agreed to. This legal doctrine is often used in contract law to make sure that both parties are held to the same standards.

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What is equitable estoppel?

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