Part V Changing Words, 10 Principle 10: Estoppel by Convention

Subject(s):

Construction of contract — Interpretation of contract

This chapter considers the circumstances in which one party to a contract can be prevented from relying on the words of the contract. If the parties to a contract have dealt with each other on the basis of a common understanding about the meaning or effect of the contract, that interpretation will bind them if it would be unjust to go back on it. The chapter discusses the principles concerned, and the test for the application of estoppel by convention. It also gives examples.