Principle of Promissory Estoppel: A Boon or a Bane?

contract general beginner late_night_post

Wud you beleev i'm stuck on dis question at 2 am? Alright, here's the scenario: A, B and C are promoters of XYZ Ltd. Before incorporation, they verbally agree that A will have exclusive management rights. Later, they form the company and its articles state that all directors have equal management rights. The question is: Can B and C sue A for damages, citing promissory estoppel?

Section 28 of the Indian Contract Act, 1872 says "when a contract has been determined, a party thereto cannot sue for damages for an act done in performance of his obligation under it". But, in Bhatia International v Chandra Prakash, it's established that this section doesn't apply when the contract is yet to be performed. So, can B and C argue that A is estopped from denying their verbal agreement?

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