The Application Of Estoppel In Shipbuilding Contract

The principle of estoppel origins from Common Law and is the derivatives of good faiths, which surmounts the theory of consideration in the Contract Law. This principle applies to other fields and has been recognized by Equity Law. The legislation in our country does not establish the principle of estoppel. Only the contract law and other departments of law involve the basic spirit of estoppels, such as the good faith, contracting fault liability, right of cancellation and right of rescission, which express the spirits of protecting the reliance interest and equity. Varied scholars are studying this principle but their researches are only limited to the fields of contract law and insurance law. Few of them have a comprehensive research of estoppel and break the limits above to do research in other fields. Other researchers don’t clarify the differences between estoppel and other similar principles such as contract variation and waiver. Though there are several types of estoppel, in consideration of the common situations and the particularity of shipbuilding contract, this paper only refers to the estoppel by representation and promissory estoppel. In the former part, this paper refers to the basic theories of estoppel, especially the elements and legal consequences of the two estoppels and the differences between estoppels, waiver and contract variation, following with the similar regulations in our country. Due to the high contract object’s value and risk, complicated techniques and theory of estoppel, the latter part refers to the research of shipbuilding contract, analyzing the situations of estoppel, combined with cases abroad and home. Based on the analyzing of theories and practice, the last part refers to the suggestions about how to avoid applying the estoppel. Otherwise I compare the pros and cons of estoppels and similar regulations in China such as the principle of good faith, contracting fault liability, right of formation, and provide some useful suggestions to perfect the regulations of China.