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Sender:
Jason Neyers
Date:
Mon, 4 Mar 2002 12:38:46 -0500
Re:
COP & Estoppel

 

Dear Benedict,

Your argument brings out an important issue. What is the true basis of the change of position defence? In the arguments so far we have two competing views: (1) COP is based upon detrimental reliance on an implicit representation (i.e. COP and estoppel are the same); (2) COP is based on a claim by the payee that the value no longer subsists in their hands/patrimony (COP is different from and unrelated to estoppel).

If the basis of COP is correctly seen as (2) (as is seemingly suggested in NatWest v Somer by Potter LJ) then the reason why there is no recovery in situations of detrimental reliance (in the sense of giving up future opportunities) has little to do with UE and COP. Instead the result is explainable on the grounds that the damages for the civil wrong of foreseeably inducing detrimental reliance (i.e. estoppel) off-set the amount payable on the basis of the UE.

 

Just a thought.

--
Jason Neyers
Assistant Professor of Law
Faculty of Law
University of Western Ontario
N6A 3K7
(519) 661-2111 x. 88435


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