ARTICLES

What is Estoppel?

The doctrine of estoppel is designed to protect one party from abuse, misrepresentation, or fraud on behalf of another. In general, it protects one side against inconsistent actions or words from another. There are many kinds of estoppel, but the common theme is that a party can be protected against changing actions, stipulations, or directions from a related person or group.

The idea behind estoppel is that one party can not be harmed when another party’s words or actions directly contradict or go against something that they have previously said or done. For example, if a person owes another person a debt and the collector informs the debtor that the debt is cancelled, then the debtor is likely to cease making payments and will assume that they do not have to pay back the money. Estoppel would stop the collector from later trying to obtain the debt, as it would contradict an impression that the debtor had gotten directly from the collector.

There are a variety of ways for estoppel to be induced. The most common is something like the situation above, with the debt, but can also involve a contract, or can be the result of negligence by one party. Essentially, estoppel protects a person or group from manipulation by another.

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If you or someone you know has been treated unfairly or you feel that estoppel should have been invoked, contact the Minneapolis business lawyers of Skjold ▪ Barthel, P.A. by calling 612-746-2560.