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Estoppel

What is Estoppel?

Estoppel is a legal device used to prevent a party from taking action that will negate some previous action taken. It prevents a party from going back on their word. For example, a lender and borrower are in court because of an unresolved debt. The lender says that he will pardon 50% of the debt; the judge can, therefore, issue an estoppel on the lender from going back on his word. Hence, he can not change his mind and only pardon 30% of the existing debt.

Additional Resources

CFI is a global provider of financial modeling courses and of the FMVA Certification. CFI's mission is to help all professionals improve their technical skills. If you are a student or are looking for a career change, the CFI website has a multitude of free resources to help you jumpstart your Career in Finance. If you seek to improve your technical skills check out some of our most popular courses. Below are some additional resources for you to further explore:

 

The Financial Modeling Certification