Contractual Damages and Post-Sidhu Proprietary Estoppel: A Further Blow to the Statute of Frauds?

(2015) 5 Property Law Review 32

9 Pages Posted: 24 Nov 2015 Last revised: 16 Jun 2018

See all articles by Dr Wei Wen

Dr Wei Wen

Sun Yat-sen University (SYSU) - School of Law

Date Written: September 16, 2015

Abstract

After the High Court’s decision in Sidhu v Van Dyke, Australian proprietary estoppel is no longer fettered by the minimum equity principle in deciding quantum of relief. This estoppel may offer monetary compensation reflecting market value in informal land contracts cases. Informal contracts are rendered unenforceable by the Statute of Frauds, meaning contractual damages are not available. In this regard post-Sidhu proprietary estoppel appears to be a blow to the Statute of Frauds. This article argues that the estoppel does not completely undermine the Statute of Frauds. That is because the estoppel does not compensate for loss of profits as contractual damages do. Contractual damages and equitable compensation are measured by two different sets of mechanisms and oriented by different criteria. The amount awarded by post-Sidhu proprietary estoppel may lie somewhere between pre-Sidhu proprietary estoppel and contractual damages. Although post-Sidhu proprietary estoppel has commercial significance, it is still not as good as contractual damages in monetary terms. In this regard, post-Sidhu proprietary estoppel may still be fettered by the minimum equity principle in a more hidden way.

Keywords: proprietary estoppel, minimum equity principle, remedies

Suggested Citation

Wen, Dr Wei, Contractual Damages and Post-Sidhu Proprietary Estoppel: A Further Blow to the Statute of Frauds? (September 16, 2015). (2015) 5 Property Law Review 32 , Available at SSRN: https://ssrn.com/abstract=2661876

Dr Wei Wen (Contact Author)

Sun Yat-sen University (SYSU) - School of Law

Guangzhou, Guangdong
China

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