Estoppel

Estoppel, a conclusive admission, which cannot be denied or controverted by the party whom it affects. Coke says that it is so called 'because a man's own act or acceptance stoppeth or closeth up his mouth to allege or plead the truth.' Estoppels are usually divided into three kinds—(1) By matter of record, where any judgment has been given in a court of record, the parties to the suit are estopped from afterwards alleging such matters as would be contradictory to the record. Where the judgment is wrongfully signed, the remedy is to apply to the court to set it aside. (2) By matter in writing. Thus, a party who has executed a deed will be precluded from afterwards denying, in any action brought upon that instrument, the fact of which it is evidence. (3) By matter in pays, as by acceptance of an estate, where e.g. a tenant cannot dispute his landlord's title, or, a licensee of a patent is estopped from denying the patentee's right to the patent. Besides these, some other modern rules are referred to the doctrine of estoppel. Where a man's misrepresentation or negligence induces in another a belief in the existence of a certain state of facts, and action is taken upon that belief, the person guilty of misrepresentation or negligence is estopped or barred from denying the existence of that state of facts. Thus, the acceptor of a bill of exchange is barred from denying the handwriting of the drawer; and, where a person draws a cheque in so careless a way that the amount may be easily changed, he is estopped by his own negligence from suing his banker for paying any so increased amount. There is, further, equitable estoppel, or estoppel by acquiescence, where a person, by tacitly representing his own position to be more favourable to another than it is, has induced that other to act on the belief that the representation is true. The doctrine of estoppel prevails in America as well as in England. In Scotland, also, the same principle is recognised, under the name of Personal Exception (q.v.). See Michael Cababé, The Principles of Estoppel (1889).