Section 115 The Indian Contract Act, 1872

Section 115 – The Indian Contract Act, 1872

📜 Title: “Estoppel”

Text of Section 115:

"When one person has, by his declaration, act or omission, intentionally caused or permitted another person to believe a thing to be true and to act upon such belief, neither he nor his representative shall be allowed, in any suit or proceeding between himself and such person or his representative, to deny the truth of that thing."

🔍 Explanation of Section 115 – Estoppel:

Section 115 lays down the principle of estoppel, which prevents a person from going back on their word or denying a fact if:

They made someone else believe a certain thing (through statement, action, or even silence when there was a duty to speak), and

The other person acted upon that belief, and

It would cause harm or injustice if the first person were allowed to deny the truth.

🧠 Essentials of Estoppel:

To apply Section 115, these elements must be present:

Representation: A declaration, act, or omission by one person.

Reliance: Another person believed it to be true and relied on it.

Action: That person acted upon the belief.

Detriment: It would cause injustice if the person is allowed to deny what was represented.

⚖️ Illustration:

If A tells B that a particular land belongs to A, and B purchases the land based on that representation, then A later cannot deny his ownership to claim the land back if B has acted upon that belief and changed his position.

🧑‍⚖️ Important Case Law:

🔹 Pickard v. Sears (1837):
Laid down the foundation for the modern doctrine of estoppel — no person can say one thing at one time and another at a later time to another’s detriment.

🔹 Central London Property Trust Ltd. v. High Trees House Ltd. (1947):
Introduced the idea of promissory estoppel, where a promise made without consideration may still be binding under certain conditions.

 

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