8/22/2023

LW2602A/LW5602A Law of Contract I

Formation II
Consideration and Promissory estoppel,
Intention to enter into legal relations,
Formalities

Prof Alexander Loke

School of Law
City University of Hong Kong

September 2021

Recapitulation:
Elements for the formation of an
enforceable contract
1. Offer and acceptance
2. Consideration
3. Intention to enter into legal relations
4. Formalities

1
 8/22/2023

Consideration and

Promissory estoppel
Central London Properties v High Trees (1947)
3 Jan 1940. “We confirm the arrangement
made between us by which the ground rent
should be reduced as from the
commencement of the lease to £1,250 per
annum.”

Lessor Lessee

99 year lease fr Sep 1937

@ £2,500 p.a.

Central London Properties v High Trees (1947)

Receiver
appointed by
debenture Receiver sought
Lease “arrangement” holders
remainder (£7,916)
29 Sep 1937 3 Jan 1940
21 September 1945

Receiver claimed
£625 (being rents
for 4Q 1945)

Defence:
(1) 1940 letter amounted to an agreement that rental should be £1,250
p.a. thereafter.
(2) Estoppel …
(3) Failure to demand rent before the 21/9/1945 letter amounted to
waiver of rents before that date.