Promissory Estoppel
Promissory estoppel is an equitable doctrine that enforces a promise lacking consideration when the promisor should reasonably expect the promise to induce reliance, the promisee actually and reasonably relies, and enforcement is necessary to avoid injustice.
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Exam Tip
Promissory estoppel = consideration substitute. Promise + Reasonable reliance + Injustice. Drennan = subcontractor bids.
What is Promissory Estoppel?
Promissory estoppel serves as a substitute for consideration, allowing enforcement of promises when detrimental reliance makes enforcement necessary.
Elements (Restatement Second Section 90)
| Element | Description |
|---|---|
| Promise | Clear and definite promise |
| Reasonable Expectation | Promisor should expect reliance |
| Actual Reliance | Promisee actually relied |
| Reasonable Reliance | Reliance was reasonable |
| Injustice | Enforcement necessary to avoid injustice |
Landmark Cases
- Ricketts v. Scothorn (1898): Grandfather's promise enforced
- Hoffman v. Red Owl (1965): Franchise reliance
- Drennan v. Star Paving (1958): Subcontractor's bid irrevocable
Damages
Typically limited to reliance damages (out-of-pocket costs), not full expectation damages.