Central London Property Trust Ltd v High Trees House [1946]

A written agreement that rent was to be reduced while flats were in low occupancy during war time lasted only whilst the flats were in low occupancy. In this case Lord Denning introduced the principle of promissory estoppel, whereby a party who leads another to believe that he will not enforce his strict legal rights should not be allowed to enforce this right at a later stage. High Trees House Ltd leased a block of flats from Central London Property Trust Ltd in 1937, for a rate of £2500 per year. Due to the heavy bombing of London during the war, rates of property occupancy were drastically lower than normal. As a result, the parties made a written agreement in January 1940 that the rent would be reduced by half. The agreement, however, did not stipulate the period for which this reduced rent was to apply. High Trees paid the reduced rate while the flats were not fully occupied, but the flats were back at full occupancy by 1945. Central London sued for payment of the full rental costs from this time (the last two quarters of 1945). HELD: