estoppel by encouragement

Estoppel by encouragement occurs when one party, through their words or actions, leads another to believe something is true or will happen, and the second party relies on that belief. If the relying party acts based on this belief and it would be unfair to let the first party deny or go back on their encouragement, the first party may be legally prevented (“estopped”) from doing so. Essentially, it’s about preventing someone from retracting their previous assurances if others have depended on them to their disadvantage.