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For estoppel to apply, what must the claimant demonstrate?

  1. They were informed of the true facts

  2. They relied on the misleading statements

  3. They paid for the misleading information

  4. They were related to the estopped party

The correct answer is: They relied on the misleading statements

For estoppel to apply, the claimant must demonstrate that they relied on misleading statements or representations made by another party. This reliance is crucial; it signifies that the claimant took action or made decisions based on the information provided, which led them to a specific belief or situation. In legal terms, estoppel prevents a party from arguing something contrary to a claim that another party has relied upon. By proving reliance, the claimant shows that they acted under a certain assumption due to the misleading statements, and this reliance must be reasonable and foreseeable by the party whose statements are in question. This underscores the importance of honesty and integrity in communications and sets boundaries on how one can backtrack on representations that have been relied upon by others.