What is 'estoppel' in the context of contractual rights?

In the context of contractual rights, 'estoppel' refers to a legal principle that prevents someone from arguing something contrary to a claim they have previously made or accepted as true, especially if that previous stance was relied upon by others. This principle often arises in situations where one party has acted based on the belief that another party will uphold a certain position or obligation. For instance, if a party has consistently accepted a performance without objection, they may be estopped from later asserting that the performance was inadequate or that the other party failed to meet their obligations.

This concept functions to uphold fairness and prevent injustices that could occur if a party were allowed to change their position after creating an expectation in another party. In other words, estoppel serves as a protective measure to ensure that individuals cannot deny or retract on their commitments or representations if it would cause harm to another who relied on those statements or behaviors.

While the other options may involve legal concepts, they do not accurately reflect the principles of estoppel. Estoppel specifically pertains to the denial of rights based on prior actions, making it central to understanding various contractual obligations and liabilities.