Estoppel
Estoppel is a legal principle that is primarily designed to protect one individual from the misdeeds or inconsistent actions of another. There are a variety of forms that estoppel can take, but they are unified by the idea that one party should not be allowed to arbitrarily change positions after making a specific promise.
Perhaps the most common form of estoppel is designed to stop a person from misleading or taking advantage of another. For example, if a landlord says that he will lower a tenant’s rent due to construction in the building, the legal doctrine of estoppel would prevent him from then trying to receive full payment from that tenant. Or if a company says that they are no longer going to try to collect a debt owed to them, they will be stopped from later trying to collect on that debt.
Estoppel can also stop a person from changing positions in court. If they had previously taken one stance and later changed it in a court setting, they will not be allowed to enforce the new position. Also, the failure to divulge information can be considered in an estoppel context, as not relaying data in a time-sensitive situation can later preclude a party from requiring that another act on that information.
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Estoppel can have significant consequences for an individual or a business. Because there are a variety of scenarios in which estoppel can be applied, it is useful to have legal counsel guide you. For more information, contact Texas Legal Entities by calling 512-472-2431 today.
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