In January 2020, Travel-Hut Ltd approached Estates Ltd and said they may have difficulties in paying...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
In January 2020, Travel-Hut Ltd approached Estates Ltd and said they may have difficulties in paying the full rent due to the decline in bookings. Fearing that Travel-Hut Ltd would default on their payment completely, Estates Ltd promised that they would accept payment of £50,000 per year, so long as the construction work continued. On the basis of this promise, Travel-Hut Ltd paid the reduced rent of £50,000 as it fell due. Travel-Hut Ltd then took out a loan with their bank to purchase another hotel located away from the city centre. In December 2020, with the construction work still not to due be completed until February 2022, Estates Ltd approached Travel-Hut Ltd and demanded that they pay the full rent of £100,000 from January 2021 onwards and for the remainder of the lease. Travel-Hut Ltd refused to pay the full rent as requested and Estates Ltd brought a claim seeking the full rent from of £100,000 from January 2021 onwards. In the High Court, Estates Ltd's claim was rejected on the grounds that Travel-Hut Ltd could rely upon the doctrine of promissory estoppel. Estates Ltd could not enforce their strict legal rights in accordance with the terms of their promise. Estates Ltd appealed this decision. The Court of Appeal allowed their appeal on the grounds that following the approach in Tool Metal Manufacturing Co. Ltd v Tungsten Electric Co. Ltd [1955] 1 WLR 761, Estates Ltd could reinstate their right to claim the full rent as from January 2021 onwards. Travel Hut-Ltd Ltd now appeals to the Supreme Court on the following ground: 1) The doctrine of promissory estoppel operates not only to suspend the promisor's strict legal rights but can operate so as to prevent the enforcement of them should it be sufficiently inequitable to do so. Questions from the Judge: From the list of questions below, you are to respond to ANY TWO and incorporate your responses to these questions as part of your presentation. Question 1: Are the principles established in Tool Metal v Tungsten Electric [1955] 1 WLR 761 binding on this court? Explain your reasoning. Question 2: How appropriate is it to apply the principles established in Central London Property Trust Ltd v High Trees House Ltd [1947] KB 130 to this appeal? Explain your reasoning. Question 3: Explain how the decision in Ajayi v RT Briscoe (Nigeria) Ltd [1964] 1 WLR 1326 may apply to this appeal. Question 4: What problems / positive developments may follow if the court were to recognise that the doctrine of promissory estoppel could prevent the enforcement of strict legal rights? In January 2020, Travel-Hut Ltd approached Estates Ltd and said they may have difficulties in paying the full rent due to the decline in bookings. Fearing that Travel-Hut Ltd would default on their payment completely, Estates Ltd promised that they would accept payment of £50,000 per year, so long as the construction work continued. On the basis of this promise, Travel-Hut Ltd paid the reduced rent of £50,000 as it fell due. Travel-Hut Ltd then took out a loan with their bank to purchase another hotel located away from the city centre. In December 2020, with the construction work still not to due be completed until February 2022, Estates Ltd approached Travel-Hut Ltd and demanded that they pay the full rent of £100,000 from January 2021 onwards and for the remainder of the lease. Travel-Hut Ltd refused to pay the full rent as requested and Estates Ltd brought a claim seeking the full rent from of £100,000 from January 2021 onwards. In the High Court, Estates Ltd's claim was rejected on the grounds that Travel-Hut Ltd could rely upon the doctrine of promissory estoppel. Estates Ltd could not enforce their strict legal rights in accordance with the terms of their promise. Estates Ltd appealed this decision. The Court of Appeal allowed their appeal on the grounds that following the approach in Tool Metal Manufacturing Co. Ltd v Tungsten Electric Co. Ltd [1955] 1 WLR 761, Estates Ltd could reinstate their right to claim the full rent as from January 2021 onwards. Travel Hut-Ltd Ltd now appeals to the Supreme Court on the following ground: 1) The doctrine of promissory estoppel operates not only to suspend the promisor's strict legal rights but can operate so as to prevent the enforcement of them should it be sufficiently inequitable to do so. Questions from the Judge: From the list of questions below, you are to respond to ANY TWO and incorporate your responses to these questions as part of your presentation. Question 1: Are the principles established in Tool Metal v Tungsten Electric [1955] 1 WLR 761 binding on this court? Explain your reasoning. Question 2: How appropriate is it to apply the principles established in Central London Property Trust Ltd v High Trees House Ltd [1947] KB 130 to this appeal? Explain your reasoning. Question 3: Explain how the decision in Ajayi v RT Briscoe (Nigeria) Ltd [1964] 1 WLR 1326 may apply to this appeal. Question 4: What problems / positive developments may follow if the court were to recognise that the doctrine of promissory estoppel could prevent the enforcement of strict legal rights?
Expert Answer:
Answer rating: 100% (QA)
Question 1 The principles established in Tool Metal v Tungsten Electric ... View the full answer
Related Book For
Modern Advanced Accounting in Canada
ISBN: 978-1259087554
8th edition
Authors: Hilton Murray, Herauf Darrell
Posted Date:
Students also viewed these law questions
-
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
-
The Crazy Eddie fraud may appear smaller and gentler than the massive billion-dollar frauds exposed in recent times, such as Bernie Madoffs Ponzi scheme, frauds in the subprime mortgage market, the...
-
Read the case study "Southwest Airlines," found in Part 2 of your textbook. Review the "Guide to Case Analysis" found on pp. CA1 - CA11 of your textbook. (This guide follows the last case in the...
-
The system shown consists of 3 cables. For example; cable C12 joins points 1 and 2. The coordinates of point 1 are (6.4, 0, 0) m, those of point 2 are (0, 9.5, -6.1) m, and those of point 3 are (0,...
-
Ten years ago Bacon Signs Inc. issued twenty-five-year 8% annual coupon bonds with a $1,000 face value each. Since then, interest rates in general have risen and the yield to maturity on the Bacon...
-
The sympathetic nervous system would be expected to have which effects? a. Stimulates the heart to beat faster b. Speeds conduction through the AV node c. Causes the heart muscle to contract harder...
-
Poplar Outdoor Corporation owns 60 percent of the voting stock of Sugg Australia. Date-of-acquisition information is as follows: Acquisition cost: \($39.5\) million Fair value of the noncontrolling...
-
Power Brite Painting Company specializes in refurbishing exterior painted surfaces that have been hard hit by humidity and insect debris. It uses a special technique, called pressure cleaning, before...
-
?Due to the integrated nature of their capital markets, investors in both the U.S. and U.K. require the same real interest rate, 2.5%, on their lending. There is a consensus in capital markets that...
-
1. The following table shows the unit shipping cost between cities, the supply, demand and the destination city. Use the Minimum Cost Method to find the initial solution (or BFS) and then find the...
-
Write out the "Model" of your tables in the following format: TABLE_NAME( Key, otherElements, etc.) (if there is a foreign key, italicize it) You might want to add extra fields to make your database...
-
Gaming entertainment is comprised of many different revenue centers. Today's casino resort is much like a "hospitality buffet" luxurious lodging, world class dining, Broadway quality shows, rock star...
-
You are an audit senior at a reputable audit firm, and you have been assigned to plan the audit engagement for "RetailSmart Ltd.," a mid-sized retail company with multiple locations. RetailSmart Ltd....
-
Assume that your company is planning to implement a new information system to improve its operations. For this purpose, the company top management is evaluating two information systems project...
-
In March, 2024, a mining company purchased a coal mine for $8,000,000. Removable coal is estimated at 1,500,000 tons. The company is required to restore the land at an estimated cost of $960,000;...
-
Mateo's disposable after-tax income is $65,100. He has always saved $500/month for his annual vacation. Everything else goes towards covering his expenses. Recently, however, Mateo was injured and...
-
Blenheim PLC has a market value of $123 million and 5 million shares outstanding. Howard Department Store has a market value of $30 million and 2 million shares outstanding. Blenheim is contemplating...
-
In Exercises evaluate the limit, using LHpitals Rule if necessary. lim 07x cos x X
-
Explain how the definitions of assets and liabilities can be used to support the consolidation of special-purpose entities.
-
What guidelines does the Handbook provide for pledges received by an NFPO?
-
Lamont Company is a Canadian company that produces electronic switches for the telecommunications industry. Lamont regularly imports component parts from Sousa Ltd., a supplier located in Mexico, and...
-
Question: When Phil McConkey interviewed for a job as an insurance agent with Alexander & Alexander, the company did not tell him that it was engaged in secret negotiations to merge with Aon. When...
-
Question: When Thomas Lussier filled out a Postal Service employment applica- tion, he did not admit that he had twice pleaded guilty to charges of disorderly conduct. Lussier suffered from Post...
-
Question: The Duke Power Co. refused to transfer any employees at its generating plant to better jobs unless they had a high school diploma or could pass an intelligence test. The company was willing...
Study smarter with the SolutionInn App