347:, or any practice of a Court of Equity, to give relief in cases of this kind, by way of mercy, or by way merely of saving property from forfeiture, but it is the first principle upon which all Courts of Equity proceed, that if parties who have entered into definite and distinct terms involving certain legal results—certain penalties or legal forfeiture—afterwards by their own act or with their own consent enter upon a course of negotiation which has the effect of leading one of the parties to suppose that the strict rights arising under the contract will not be enforced, or will be kept in suspense, or held in abeyance, the person who otherwise might have enforced those rights will not be allowed to enforce them where it would be inequitable having regard to the dealings which have thus taken place between the parties. My Lords, I repeat that I attribute to the Appellant no intention here to take advantage of, to lay a trap for, or to lull into
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269:. Under the lease, Hughes was entitled to compel the tenant to repair the building within six months of notice. Notice was given on 22 October 1874 from which the tenants had until 22 April to finish the repairs. On 28 November, the tenant railway company sent a letter proposing that Hughes purchase the tenant's leasehold interest. Negotiations began but later broke down, at which point the landlord demanded the repair of the building from 6 months since the original notice. The tenant claimed he should have had 6 months from the time the negotiations broke down, based on promissory estoppel.
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those with whom he was dealing; but it appears to me that both parties by entering upon the negotiation which they entered upon, made it an inequitable thing that the exact period of six months dating from the month of
October should afterwards be measured out as against the Respondents as the period
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The House of Lords affirmed the Court of Appeal. It ruled that with the initiation of the negotiations there was an implied promise by the landlord not to enforce their strict legal rights with respect to the time limit on the repairs, and the tenant acted on this promise to their detriment.
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My Lords, it is upon those grounds that I am of opinion that the decision of the Court below is correct. It was not argued at your
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THOMAS HUGHES APPELLANT v THE DIRECTORS, & C., OF THE METROPOLITAN RAILWAY COMPANY RESPONDENTS
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Thomas Hughes owned property leased to the
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Property Trust Ltd v High Trees House Ltd
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