ESTOPPEL (ARTICLE 1431)

1. An admission;
2. Is rendered conclusive
3. Upon the person making it; and
4. Cannot be denied or disproved against the person relying thereon
CONCEPT OF ESTOPPEL
Estoppel is a bar which precludes a person from denying or asserting any
thing to the contrary of that which has, in contemplation of law, been establish
ed as the truth, either by the acts of judicial or legislative officers or by hi
s own deed or representation, either expressed or implied.
It concludes the truth in order to prevent fraud and falsehood, and impos
es silence on a party only when in conscience and honesty he should not be allow
ed to speak.
DISTINGUISHED FROM WAIVER
A waiver is a voluntary and intentional abandonment or relinquishment of
a known right. It carries no implication of fraud. It involves the act or condu
ct of only one of the parties.
An equitable estoppel may arise, however, even where there is no intenti
on on the part of the person estopped to relinquish any existing right and frequ
ently carries the implication of fraud. It involves the conduct of both parties.
In Lopez v. Ochoa (L- 7955, May 30, 1958), the Supreme Court held that w
aiver and estoppel are frequently used as convertible terms. The doctrine of wai
ver belongs to the family of, is of the nature of, is based on, estoppel. The es
sence of waiver is estoppel and where there is no estoppel, there is no waiver.
This is especially true where the waiver relied upon is constructive or implied
from the conduct of a party.
DISTINGUISHED FROM RATIFICATION
In ratification, the party is bound because he intended to be bound; in
estoppel, the party is bound notwithstanding the fact that there was no such int
ention because the other party will be prejudiced and defrauded by his conduct u
nless the law treats him as legally bound.
DISTINGUISHED FROM FRAUD
Estoppel exists with or without a contract; fraud presupposes an attempt
to enter into a valid agreement or contract.
While estoppel may raised as a defense, fraud may properly be a cause of
action on account of the vitiated consent that it produces.
ADMISSIONS
A party may be estopped to insist upon a claim, assert an objection, or
take a position which is inconsistent with an admission which he had previously
made and in reliance upon which the other party has changed his position.
SILENCE OR INACTION
This is sometimes referred to as estoppel by standing by or laches. Mere inn
ocent silence will not work an estoppel. There must also be some element of turp
itude or negligence connected with the silence by which another is misled to his
injury. But one who invokes this doctrine of estoppel must show not only unjust
ified inaction but also some unfair injury would result to him unless the action
is held barred.
Estoppel by acquiescence is closely related to estoppel by silence. In t
he former, a person is prevented from maintaining a position inconsistent with o
ne in which he has acquiesced.
NATURE OF LACHES
Laches is failure or neglect, for an unreasonable and unexplained length
of time, to do that which, by exercising due diligence, could or should have be
en done earlier; it is negligence or omission to assert a right within a reasona
ble time, warranting a presumption that the party entitled to assert it either h
as abandoned or declined to assert it.
ELEMENTS OF LACHES
1. Conduct on the part of the defendant or of one under whom he claims, giving r
ise to the situation complained of;
2. Delay in asserting complainant s rights after he had knowledge of the defendant s
conduct and after he has had an opportunity to sue;
3. Lack of knowledge or notice on the part of the defendant that the complainant
would assert the right on which he bases his suit;
4. Injury or prejudice to the defendant in the event relief is accorded to the c
omplainant.
LACHES AND PRESCRIPTION DISTINGUISHED
LACHES
PRESCRIPTION
AConcerned
matter ofwith
timethe fact of delay
Principally a question of inequity founded on some change in the condition of th
e property
Statutory
Applies
Based
Not statutory
based
ontoaonfixed
orathe
law
equity
fixed
time
relation
time of the parties
KINDS OF ESTOPPEL
1. Technical Estoppels
a. Estoppel by record the preclusion to deny the truth of matters set forth in a
record, whether judicial or legislative, and also to deny the facts adjudicated
by a court of competent jurisdiction
Example: the conclusiveness of a judgment on the parties to a case
b. Estoppel by deed a bar which precludes one party to a deed and his privies fr
om asserting as against the other party and his privies any right or title in de
rogation of the deed, or from denying the truth of any material facts asserted i
n it; a written instrument is necessary for there to be estoppel by deed
? Some doctrines:
1. If the deed or instrument is null and void because of the contract, there is
no estoppel
2. Ordinarily, the person estopped must be capacitated; but a minor is clever en
ough to deceive others, estoppel may result
3. If a person, who is not a party to the instrument, notarizes the same, he is
not in estoppel
2. Equitable Estoppel or Estoppel in Pais
It arises when one by his acts, representations or admissions, or by his
silence when he ought to speak out, intentionally or through culpable negligenc
e, induces another to believe certain facts to exist, and such other rightfully
relies and acts on such belief, so that he will be prejudiced if the former is p
ermitted to deny the existence of such facts. It takes place in a situation whe
re because if a party s action or omission, he is denied the right to plead or pro
ve an otherwise important fact.
This may be estoppel:
1. by conduct or by acceptance of benefits
2. by representation or concealment
3. by silence
4. by omission
5. by laches
? Some doctrines:
a. Conduct because of ignorance or mistake does not result in estoppel
b. Estoppel by laches bars an action to create a vested right (executory interes
t) but does not bar an action to protect a vested right (executed interest)
c. Just because a person is silent does not necessarily mean that he will be in
estoppel; there should have been a duty or obligation to speak
d. A mere promise to perform or to omit at some future time does not necessarily
result in estoppel (promissory estoppel); for this to exist, the promise must h
ave been relied upon and prejudice would result unless estoppel is applied
ELEMENTS OF ESTOPPEL IN PAIS
In relation to the party sought to be estopped:
1. Conduct amounting to false representation or concealment of material facts or
at least calculated to convey the impression that the facts are otherwise than
and consistent with those which the party subsequently attempts to assert;
2. Intent or at least expectation that this conduct shall be acted upon by at le
ast influence the other party;
3. Knowledge, actual or constructive, of the real facts
In relation to the party claiming the estoppel:
1. Lack of knowledge or of the means of knowing the truth as to the facts in que
stion;
2. Reliance, in good faith, upon the conduct or statement as to the facts in que
stion;
3. Action or inaction based thereon of such character as to change the position
or status of the party claiming the estoppel to his injury, detriment, or prejud
ice
ESTOPPEL AGAINST OWNER
When in a contract between third persons concerning immovable property, o
ne of them is misled by a person with respect to the ownership of real right ove
r the real estate, the latter is precluded from asserting his legal title or int
erest therein, provided all these requisites are present:
1. There must be fraudulent representation or wrongful concealment of facts know
n to the party estopped;
2. The party precluded must intend that the other should act upon the facts as m
isrepresented;
3. The party misled must have been unaware of the true facts; and
4. The party defrauded must have acted in accordance with the misrepresentation.
? An estoppel operates on the parties to the transaction out of which it a
rises and their privies.
? The government is not estopped by mistake or error on the part of its of
ficials or agents; the erroneous application and enforcement of the law by publi
c officers does not prevent a subsequent correct application of the statute.
NATURAL LAW
1. Immutable and independent of all human regulations
2. Includes those rules which are neither written nor promulgated, but are deriv
ed from reason and nature
TYPES OF OBLIGATIONS:
1. Moral obligations duties of conscience completely outside the field of law
2. Natural obligations not sanctioned by any action but have a relative juridica
l effect
3. Civil obligations juridical obligations which apparently are in conformity wi
th positive law but are contrary to juridical principles and susceptible of bein
g annulled
4. Mixed obligations have full juridical effect
CONDITIONS NECESSARY FOR NATURAL OBLIGATION TO ARISE:
1. Juridical tie which is not prohibited by law
2. This tie is not given effect by law
? When a debtor offers a guarantor for his natural obligation, he impliedl
y accepts the coercive remedies to enforce the guaranty, and therefore, the tran
sformation of the natural obligation into a civil obligation.
??
??
??
??