Central London Property Trust Ltd v High Trees House Ltd [1946] EWHC KB 1 (18 July 1946)

CENTRAL LONDON PROPERTY TRUST LTD v HIGH TREES HOUSE LTD [1946] EWHC KB 1; [1947] KB 130 King's Bench Division 18 July 1946

Judge: Denning J

Facts

In 1937 High Trees House leased a block of flats from Central London Property Trust at £2,500 a year. In 1940, because of the war, many flats were empty. The landlord agreed in writing to reduce the rent to £1,250. By 1945 the flats were full again. The landlord claimed the full rent for the last two quarters of 1945 and arrears at the full rate from 1940.

Held

Denning J held that the landlord was entitled to the full rent from the time the flats were full again, but not to the arrears for the period when the reduced rent was in force. A promise intended to be binding, intended to be acted on, and in fact acted on, is binding so far as its terms properly apply, even though there is no consideration.

Key Principles

1. Promissory estoppel: a clear promise, intended to be acted on, and acted on, may be binding without consideration.

2. The promise is binding only so far as its terms properly apply; it can be withdrawn on reasonable notice for the future.

3. The doctrine is a shield, not a sword: it prevents the promisor from going back on the promise, but does not create a new cause of action.

4. The case is the foundation of promissory estoppel in English law.

Why It Matters in Sierra Leone

High Trees is persuasive authority in Sierra Leone on promissory estoppel and the variation of contracts. It is cited where one party has relied on a promise to accept less than is strictly due, and the other later seeks to enforce the original obligation.