Estoppel is a legal doctrine that prevents a party from arguing something contrary to a claim made or an established position when it would create inconsistency or unfairness. Here’s a practical example of each form of estoppel:
1. Estoppel by Representation
Definition: This form occurs when one party makes a statement or representation to another party, and the latter relies on that representation to their detriment.
Example: Imagine a scenario where Alice, a homeowner, tells her neighbor Bob that she plans to sell her house for $300,000. Based on Alice’s representation, Bob decides not to pursue buying a similar property he had been interested in, believing he could buy Alice's house at a good price. However, after some time, Alice decides not to sell the house at all. If Bob decides to take legal action to claim that he should have been allowed to buy Alice's house due to his reliance on her representation, he may invoke estoppel by representation. The law might prevent Alice from denying that she intended to sell the house because Bob relied on her statement to his detriment.
2. Estoppel by Conduct
Definition: This type of estoppel occurs when a party's conduct (behavior) leads another party to reasonably rely on that conduct, and then the first party attempts to go back on their conduct.
Example: Consider that Charles regularly takes care of his neighbor Dana's dog whenever she is out of town and has been doing so for several years without any formal agreement. One day, Dana decides to pay someone else to take care of the dog and informs Charles that he is no longer needed. Charles, believing that his services were needed based on Dana's conduct (the expectation he built through years of dog-sitting), can invoke estoppel by conduct. If he had incurred expenses in preparation to take care of the dog for a particular upcoming trip, he might argue that Dana's previous conduct of using his services created an expectation that she would continue doing so.
3. Estoppel by Record
Definition: This form of estoppel arises from the records of a court or a legal decision that has been made and cannot be disputed by the parties that were involved in the case.
Example: Suppose a court has ruled in a previous case that a particular piece of land belongs to Emma. That judgment is recorded in the court's official records. Later on, Emma's neighbor Frank tries to claim that the land actually belongs to him, presenting new evidence to support his claim. However, because there is a legally binding court judgment (the record) confirming Emma's ownership, Frank is estopped from disputing her title to the land. He cannot assert a claim contrary to the court's previous ruling.
Summary
- Estoppel by Representation involves misleading statements that lead another party to act.
- Estoppel by Conduct focuses on actions or behavior that create reasonable expectations which one party later tries to contradict.
- Estoppel by Record pertains to the final judgments or records of courts that prevent parties from disputing established facts or rights.
Each type of estoppel serves to promote fairness and consistency in legal proceedings, ensuring that parties cannot take contradictory positions that would unfairly disadvantage others who have relied on their previous statements or conduct.