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The doctrine of estoppel The basic concept of an estoppel is that where a person (A) has caused another (B) to act on the basis of a particular state of affairs, A is prevented from going back on the words or conduct which led B to act on that basis, if certain conditions are satisfied.
Promissory Estoppel The defendant made a clear and unambiguous promise. The plaintiff acted in reliance on the defendant's promise. The plaintiff's reliance was reasonable and foreseeable. The plaintiff suffered an injury due to reliance on the defendant's promise.
In a promissory estoppel case, the court in its discretion can award either detrimental reliance damages or expectation damages (including specific performance), whichever it determines better avoids injustice.
The elements of promissory estoppel are (1) a promise, (2) the promisor should reasonably expect the promise to induce action or forbearance on the part of the promisee or a third person, (3) the promise induces action or forbearance by the promisee or a third person, and (4) injustice can be avoided only by ...
Affirmative Defenses that can be asserted against a claim of promissory estoppel include: 1) existence of a contract (express or implied) between the parties; 2) lack of a clear and unequivocal promise; 3) lack of reasonable detrimental reliance; 4) lack of injustice that can only be avoided if the promise is enforced.
This Part examines the four discrete phases (estoppel, contract, tort, and equity) in the development of promissory estoppel.
Limitation on Promissory Estoppel There has to be an existing legal relationship between the parties. Must have been (detrimental) reliance on the promise. Cannot be inequitable for promisor to go back on the promise. A "shield not a sword"
Requirements of Promissory Estoppel The promisee believed the promisor, and acted on that promise in good faith; The promisor later reneged on that promise causing financial harm to the promisee; and. The nature of the promise is such that the only way to avoid injustice is by enforcing the promise.