“Proprietary Estoppel”: Rethinking Its Relationship with the Dichotomy between Contractual and Tortious Liability, with a Comparative Study of English and Iranian Law

Document Type : Research Paper

Authors

1 PhD Candidate in Private Law, Faculty of Law, Farabi College, University of Tehran

2 ,Iran ,Tehran ,Tehran of University ,College Farabi ,Law of Faculty ,Law Private of Professor Associate

10.22054/jplr.2026.93951.3022
Abstract
Based on a classical dichotomy, the Iranian legal system limits personal liability to “contractual” and “tort” liability, recognizing no middle ground. This binary division, especially in void contracts, leads to unfair outcomes where neither general contract rules can provide compensation nor tort liability can fulfill the injured party’s reasonable expectations.

Using a descriptive-analytical and comparative approach, this article examines the English legal concept of “proprietary estoppel” to evaluate its capacity as a solution to this gap. Findings show that proprietary estoppel, relying on “assurance,” “detrimental reliance,” and “detriment,” creates a flexible mechanism between contract and tort, offering a better solution for achieving justice in specific cases.

Furthermore, an assessment of Iranian law reveals that despite existing foundations and notable similarities in comparable institutions, none effectively fill the gaps caused by this classical liability duality. Finally, while criticizing this absolute dichotomy, this study proposes proprietary estoppel as an efficient model for rethinking legal rules, paving the way for its localization and breaking free from the rigid contract-tort division in the future.

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Articles in Press, Accepted Manuscript
Available Online from 08 November 2026