Land Law/ Property Law (Propriety Estoppel)
Fact
Barber was tenant of some land, purported to grant Willmott a lease that had breached of covenant. Barber also granted Willmott an option to purchase Barber’s lease. However, no written consent had been given by the landlord. Barber also refund to assign the lease to Willmott. Willmott then relied on estoppel to sue the landlord as he allowed Barber to spend money on the land and mistakenly believe that he would be able to exercise the option.
Held
The court considered that“five probanda” had to be established for the group of proprietary estoppel:
1.The claimant must have made a mistake as to his legal rights;
2.The claimant must have performed acts in reliance in this mistake;
3.The defendant must know of the existence of his own right (which is inconsistent with the right claimed by the claimant);
4.The defendant must know of the claimant's mistaken belief; and
5.The defendant must have encouraged the claimant in his act of reliance.
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