What is the purpose of "equitable estoppel" in contract disputes?

The purpose of equitable estoppel in contract disputes is to prevent a party from changing their legal position after another party has reasonably relied on their conduct or representations. This legal principle aims to promote fairness and justice by holding a party to their implied promises or representations when the other party has acted in reliance on those statements, thereby creating a situation where it would be unjust to allow the first party to claim otherwise.

Equitable estoppel is particularly important in scenarios where formal agreements may not exist, but the actions or statements of one party lead another to believe in a particular set of facts or future conduct. For instance, if one party leads another to believe that a contract will not be enforced against them, and the second party acts on that belief—perhaps by investing time or resources—it would be inequitable for the first party to later assert a different position.

Other options do not address the role of equitable estoppel effectively. While ensuring that agreements are documented in writing is a critical aspect of contract law, it falls outside the scope of equitable estoppel. Similarly, enforcing oral contracts relates to the enforceability of agreements rather than stopping a party from changing their position based on reliance. Establishing damages in a breach of contract case pertains to the compensation aspect of contract law