The doctrine requires a clear and definite promise, reasonable and foreseeable reliance, and injustice absent enforcement. Recovery is frequently limited to reliance damages rather than the promise's full value.
It substitutes for consideration.
Alternative Names:
Detrimental Reliance|Estoppel by Promise
Why it Matters?
Recovery limited to reliance rather than expectation damages is the doctrine's practical constraint, so a party that would have profited substantially recovers only what it spent in reliance. That makes promissory estoppel a fallback rather than an equivalent to contract. It can also overcome the statute of frauds in some jurisdictions, which is its most valuable application where an oral agreement would otherwise be unenforceable.
Frequently Confused with
Related terms
Frequently asked questions
What damages are recoverable?
Can it overcome the statute of frauds?
