What is the principle of estoppel in the context of waivers?

The principle of estoppel in the context of waivers refers to the idea that once a party has waived a right or claim, they cannot later reinstate it to the detriment of the other party who relied on that waiver. This means that if a party has led another to believe that a right will not be enforced—through actions, inaction, or express statements—they are legally prevented from asserting that right later on, provided that the other party has acted upon that belief.

In essence, the principle of estoppel ensures fairness and prevents unjust outcomes that could arise if one party could simply retract their waiver after the other party has relied on it. For example, if an insurer decides not to enforce a claims deadline and the policyholder acts based on that understanding, the insurer would be estopped from later claiming the deadline was enforceable. This reinforces the importance of consistency in dealings and protects parties from sudden changes that could lead to harm or disadvantage based on the original waiver.

The other choices suggest possibilities that do not accurately reflect the nature of estoppel. An ability to reinstate rights after a waiver contradicts this principle's fundamental purpose, which is to ensure that once a right has been waived, it remains so, particularly if reliance has been placed