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casetreasury

Commonwealth v Verwayen (1990) 170 CLR 394

Commonwealth v Verwayen (1990) 170 CLR 394

Facts: The claimant (C), Verwayen, claimed damages as a result of a collision between Navy ships, including the Voyager on which he was serving. The Commonwealth government, the defendant (D), made representations that it would waive the Limitation of Actions Act and admitted liability against a shipmate of C.


Held (HCA): The government had waived its right to dispute its liability to C since it has repeatedly represented that he would not resist commencement of the action out of time. 


Held (Mason CJ): Promissory estoppel is concerned not to make good the assumption but to do what is necessary to prevent the suffering of the detriment, and no more. In an appropriate case, the party estopped will be held to the assumption, even if it means effective enforcement of a voluntary promise.


Ratio: Promissory estoppel makes good detriment but can effectively enforce the promise if necessary.

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