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A breach of contract claim must include three key elements: a valid contract, a breach of that contract, and resulting damages. Each element must be clearly demonstrated for your case to be valid in Middlesex Massachusetts. Ensuring you have a solid understanding of these elements will enhance your chances of a successful recovery.
In contract law, the implied covenant of good faith and fair dealing is a general presumption that the parties to a contract will deal with each other honestly, fairly, and in good faith, so as to not destroy the right of the other party or parties to receive the benefits of the contract.
In every contract there is an implied covenant of good faith and fair dealing by each party not to do anything which will deprive the other parties of the benefits of the contract, and a breach of this covenant by failure to deal fairly or in good faith gives rise to an action for damages.
Promissory estoppel is the legal principle that a promise is enforceable by law, even if made without formal consideration when a promisor has made a promise to a promisee who then relies on that promise to his subsequent detriment.
There cannot be a written contract, for there to be promissory estoppel. Although you can sue for both, ultimately, a Plaintiff in a court case will have to choose between estoppel or breach of contract if there is a written agreement.
Breach of contract is not an equitable remedy. If one has a breach of contract claim, then you cannot typically file an accompanying promissory estoppel claim. Specifically, promissory estoppel is not available when an unambiguous contract exists that covers the issue for which damages are sought.
An agreement made by promissory estoppel will typically have the same binding effects on parties that a valid contract would. If a party breaches an obligation created by promissory estoppel, a court can choose to assign either reliance damages or expectation damages.
The implied covenant of good faith and fair dealing is automatically included in every contract and cannot be waived by the parties.
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.
Traders & General Insur- ance Co.,20 the California Supreme Court recognized that breach of the implied covenant of good faith and fair dealing in insurance contracts could constitute a tort.