Facts
- The case involved a husband and wife undergoing divorce proceedings.
- The husband promised to pay his wife an annual sum of £100, tax-free, as permanent maintenance.
- The promise was not supported by consideration; the wife did not provide any act or forbearance in exchange.
- The husband failed to make the payments, leading the wife to bring a claim to enforce the promise.
- The wife argued that the principle of promissory estoppel should bind the husband to his promise, despite the lack of consideration.
- The Court of Appeal rejected the wife’s claim, determining that promissory estoppel could not be used to create a cause of action where consideration was missing.
Issues
- Whether promissory estoppel can operate as an independent cause of action in the absence of consideration.
- Whether the equitable doctrine of promissory estoppel can be invoked to enforce a promise that lacks consideration.
- Whether a party can establish a contractual claim using promissory estoppel instead of fulfilling the requirements for contractual formation, specifically consideration.
Decision
- The Court of Appeal held that promissory estoppel cannot be used as a basis for a claim where consideration is absent.
- The court clarified that promissory estoppel is a defence preventing enforcement of strict legal rights in certain circumstances but cannot create new legal rights.
- It was affirmed that the doctrine of consideration remains essential for the enforceability of contracts.
- The wife's claim failed as there was no consideration for the husband's promise.
- The court emphasized the distinction between equitable modification of existing rights and the creation of new contractual rights.
Legal Principles
- Promissory estoppel acts as a shield (defence) and not a sword (cause of action).
- The doctrine of consideration is fundamental in contract law; a promise unsupported by consideration is generally unenforceable.
- Promissory estoppel does not remove the requirement for consideration in the creation of contractual obligations.
- Equitable principles may prevent strict enforcement of rights but do not establish new causes of action in contract law.
- Pre-existing contractual relationships are not required for estoppel to operate, but estoppel cannot substitute for the absence of consideration.
Conclusion
Combe v Combe established that promissory estoppel cannot be used as a basis for enforcing a promise where consideration is absent, reaffirming the necessity of consideration for contract formation and limiting promissory estoppel to the role of a defence rather than a means to create new legal rights.