Estoppel is a principle of law which prevents a person from going back on his words, actions or positions simply because a liability has arisen. In other words, it holds people bound by their previous actions or promises.


For example, a person who has previously created an impression that another person has his authority to act on his behalf would not be allowed to deny the authority given to that person, if a third party sustains some injury by relying on the impression which that person has already created. He is a principal and he is bound by the actions of his agent if carried out within the scope of his authority.
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