“””…it has often been asserted that equitable promissory estoppel will sometimes afford a defence in a contractual situation, but in the absence of consideration, cannot constitute a cause of action to enforce a gratuitous representation.”” Halliwell, 14 Legal Stud. 15 1994 With reference to the above quotation, discuss the extent to which promissory estoppel can be used to aid a debtor whose debt has been gratuitously forgiven by its creditor. LLB (HONS) CONTRACT LAW, BPP University.”

Consideration

An agreement is not usually binding unless, the binding is supported by consideration.  Consideration has become a very important principle of the ‘Formation of a Contract’. Formation of a Contract means a party has an agreement between other parties that is a contract intended to be legally binding. A consideration has been illustrated with being something that it benefits the promisor.

Equitable Estoppel

Equitable estoppel is the old doctrine, which it could be said, to be a development of it. However, the case of Hughes v Metropolitan Railway Co 1877 , it is all about, the lease of the premises. The landlord had made a promise to the tenant, which the tenant has dependent on the promise. The promise needs to be hold to be binding.

However, the judge has made the decision, where there is an equity of a doctrine, where someone can make promises to be binding des…(short extract)