Paralegal Advanced Competency Exam (PACE) Practice Exam

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What does estoppel prevent an individual from doing?

  1. Making legal claims based on new evidence

  2. Changing their mind about previously communicated facts

  3. Disputing the validity of a contract

  4. Refusing to pay debts incurred under a prior agreement

The correct answer is: Changing their mind about previously communicated facts

Estoppel is a legal principle that prevents an individual from changing their mind about previously communicated facts, particularly when that change would harm another party who relied on the original statement or position. This principle is rooted in fairness and consistency, protecting parties from being misled by another's prior assertions or behaviors. In situations where one party has made a clear and definitive statement, and the other party has taken action based on that statement, estoppel can inhibit the first party from later asserting a contrary position. This is important in various legal contexts, such as contract law, where one party might have acted based on the understanding conveyed by the other, only to have that party later take a different stance. The other options involve situations that do not directly relate to the essence of estoppel. Making legal claims based on new evidence allows for the evolution of a case; disputing the validity of a contract may concern other legal doctrines, such as fraud or duress; and refusing to pay debts typically falls under different legal obligations or defenses unrelated to estoppel.