Concept of Promissory Estoppel

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Promissory Estoppel Promissory Estoppel The legal doctrine known as promissory estoppel describes the process whereby a party to an agreement or contract is barred from revisiting a part of the agreement that is already settled, whether it be part of an original agreement or after the fact. It stops someone from reneging on an agreement agreed to in good faith. As it relates to short payment of a debt, it is generally held that partial payment allows the person owed the money to turn around and sue for the balance at their discretion but this is not always the case based on case history. It used to be that a balance was a balance and consideration must be paid for a person owed a debt to forsake their legal rights under the original agreement but that has changed over time. Now, if a person owed a debt agrees to a reduced payment in a binding way and the person owing the debt reacts based on that revised agreement, the revised agreement generally is enforced and the original terms under the original agreement are amended or disregarded. Loss of Legal Rights The concept of promissory estoppel can lead to legal rights being limited for a party to an agreement simply because a contract or other agreement seemingly settle a matter before to the extent that it cannot be altered later even if one of the parties insists on it. Once an agreement is in place, especially if it is written down, potential litigants will have a hard time going against that contract to execute a
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