Doctrine of Promissory Estoppel.
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To begin with, the case as regards Richard and Ernie is related to the Doctrine of Promissory Estoppel, which is derived from Equity. According to this doctrine, if one party to the contract (promisor) makes a promise which the other party to the contract (promisee) acts upon, the promisor is estopped from going back on his promise, even though the promise did not provide any consideration.
Theoretically, by this concept, Ernie should be estopped from asking Richard for the remaining balance of ₤140. The main reason is that Ernie promised to accept a smaller sum of ₤16…
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