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Promissory estoppel: Difference between revisions
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In [[Contract law in the United States|United States contract law]], a '''promissory estoppel''' allows a party to <span style="background:LightBlue">enforce a promise</span> even if no contract was formed. | In [[Contract law in the United States|United States contract law]], a '''promissory estoppel''' allows a party to <span style="background:LightBlue">enforce a promise</span> even if no contract was formed. (See Restatement (Second) of Contracts § 90 (1981)) | ||
In short, a '''promissory estoppel''' is not supported by [[Contracts/Consideration#Exceptions_to_the_Consideration_Requirement|consideration]]. | In short, a '''promissory estoppel''' is not supported by [[Contracts/Consideration#Exceptions_to_the_Consideration_Requirement|consideration]]. | ||
Revision as of 14:28, June 25, 2023
In United States contract law, a promissory estoppel allows a party to enforce a promise even if no contract was formed. (See Restatement (Second) of Contracts § 90 (1981))
In short, a promissory estoppel is not supported by consideration.
Elements
A promissory estoppel requires 3 elements:
- a promise: this promise reasonably induces the promisee's action or forbearance (not doing something)
- reliance: the promisee would have to rely on the promise. The promissee's reliance is roughly equivalent to consideration. This reliance needs (1) substantial action and (2) justifiable reliance.
- detriment: the promisee must have suffered substantial detriment.
For example, a mother can promise to fully pay for her daughter's college education only after her graduation with a bachelor's degree in physics (no other subject allowed) in less than 5 years. If mathematics and physics aren't the daughter's forte, she will have to incur a detriment by studying much harder, study for many more hours, & pay for additional study materials than if she were majoring in history with a strong background in history. If the mother, after 4 years that her daughter faced the opportunity cost of not working and studying full time, taking on student loans, and so, informs her daughter that she won't pay for any of her education, then this situation causes an injustice for the daughter.
