What is promissory estoppel in simple words?
What is promissory estoppel in simple words?
Overview. Within contract law, promissory estoppel refers to the doctrine that a party may recover on the basis of a promise made when the party’s reliance on that promise was reasonable, and the party attempting to recover detrimentally relied on the promise.
What are the requirements for promissory estoppel?
There are common legally-required elements for a person to make a claim for promissory estoppel: a promisor, a promisee, and a detriment that the promisee has suffered. An additional requirement is that the person making the claim — the promisee — must have reasonably relied on the promise.
Can you sue for promissory estoppel?
The general rule is that broken promises, by themselves, are not actionable in court. However, there is a little-known exception: promissory estoppel. In the absence of a contract or agreement, which requires benefit to both sides (referred to as consideration), the law is generally unavailable to enforce a promise.
Can a plaintiff use promissory estoppel?
The doctrine that a promise made without the exchange of consideration is binding and enforceable if: The plaintiff acted in reliance on the defendant’s promise. The plaintiff’s reliance was reasonable and foreseeable.
How does promissory estoppel work?
Promissory estoppel is a legal doctrine that stops a person from going back on a promise even in the absence of a legal agreement or a contract. It provides that a promise is enforceable by law when a person makes a promise to another person, and that other person relies on that promise to its detriment.
Which is the best definition of promissory estoppel?
Promissory estoppel is the legal principle that a promise is enforceable by law, even if made without formal consideration, when a promisor has made a promise to a promisee who then relies on that promise to his subsequent detriment. Promissory estoppel is intended to stop the promisor from arguing…
When to use estoppel in a contract case?
The courts will not necessarily force the party to honor its promise, unless this is the only way to do justice. When and How to Use Estoppel A party seeking to raise estoppel must make out a clear case and show that it would be unconscionable for the promisor to go back on their promise. Unconscionability is really the backbone of estoppel.
Can a person break a promise under estoppel?
There is no general restriction, which prohibits a person from breaking his or her promise. Accordingly, before an action for estoppel will succeed, it must be shown that, in the circumstances, it would be unfair or inequitable to allow them to do so.
Can a court award reliance damages under promissory estoppel?
A court relying on the promissory estoppel doctrine to award damages may award reliance damages or expectation damages to the non-breaching party. Bear in mind that a plaintiff filing a promissory estoppel action must come with “ clean hands ”.