Glossary · Contracts
Promissory Estoppel
promissory-estoppel-efcf03d3964fa86a-2026-07-28
- Type
- Glossary
- Jurisdiction
- National
- Date
- 2026-07-28
- Topic
- Contracts
A doctrine that enforces a promise even without a formal contract when the promisor should have expected the promise to induce reliance, the other party reasonably relied on it, and injustice can only be avoided by enforcement. It functions as a safety valve where consideration or other contract formalities are missing. Recovery is often limited to the losses caused by the reliance.
Definition
A doctrine that enforces a promise even without a formal contract when the promisor should have expected the promise to induce reliance, the other party reasonably relied on it, and injustice can only be avoided by enforcement. It functions as a safety valve where consideration or other contract formalities are missing. Recovery is often limited to the losses caused by the reliance.
Promissory Estoppel. A doctrine that enforces a promise even without a formal contract when the promisor should have expected the promise to induce reliance, the other party reasonably relied on it, and injustice can only be avoided by enforcement. It functions as a safety valve where consideration or other contract formalities are missing. Recovery is often limited to the losses caused by the reliance. Example: The developer recovered its moving costs under promissory estoppel after the city abruptly withdrew its promised tax incentive.