Promissory Estoppel

calender iconUpdated on April 02, 2024
investing
laws and regulations

Promissory estoppel is a legal doctrine that prevents someone from making a promise that they will not keep.

Elements of promissory estoppel:

  • Promission: The promise made by the promisor.
  • Acceptance: The promisor’s reliance on the promise.
  • Misrepresentation: The promisor’s failure to disclose material facts about the promise.
  • Unjust enrichment: The promisor’s gain from the promise.

Requirements for a valid promissory estoppel:

  • The promisor must have made a promise that is definite, unambiguous, and certain.
  • The promisor must have intended to rely on the promise.
  • The promisor must have been aware of the facts upon which the promise is based.
  • The promisor must have failed to disclose material facts about the promise.

Examples of promissory estoppel:

  • A landlord promises to repair a tenant’s apartment, but fails to do so.
  • A seller promises to deliver a car on time, but fails to do so.
  • A manufacturer promises to warranty a product, but fails to honor the warranty.
  • The promisor is bound to fulfill the promise.
  • The promisor can be held liable for any damages caused by their failure to uphold the promise.
  • The promisor can be sued for breach of contract.

Additional notes:

  • Promissory estoppel is a common law doctrine, meaning that it applies to all states in the United States.
  • Promissory estoppel is a significant doctrine in contract law.
  • Promissory estoppel can be used to resolve a variety of disputes, including breach of contract, fraud, and misrepresentation.

FAQ's

What do you mean by promissory estoppel?

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Promissory estoppel prevents someone from backing out of a promise when the other party has relied on it and suffered a loss as a result.

What are the elements of promissory estoppel?

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What is an example of promissory estoppel?

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What are the principles of promissory estoppel?

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