Examples:

• • Jessica’s boss promises her a raise if she takes on extra responsibilities, so she does, but later he denies ever promising a raise.
  • Mike assures his elderly neighbor Gladys he’ll care for her cat when she moves to a nursing home. Relying on this, Gladys moves but Mike refuses to take the cat.
  • A charity pledges Tom $25K for his medical bills. He incurs the bills expecting payment, but the charity reneges, saying the pledge isn’t a binding contract.
  • Ed’s father pledges an $8,000 condo purchase contribution. Ed signs the purchase contract, but his dad then refuses to give him the money.
  • Acme Manufacturing assures Smith Supplies it will buy 1000 units a month. Smith ramps up production, but Acme later says it’s not contractually obligated to buy anything.

How to Proceed:

• • Scrutinize any promises made to you to see if they are definite and unambiguous enough to support a promissory estoppel claim if broken.
  • Before relying on a promise to your substantial detriment, consider getting it in writing or seeking a more formal contractual agreement.
  • Document the promise, your reliance, and the detriment you suffered as a result, as this evidence can help prove a promissory estoppel claim.
  • If someone fails to live up to a promise that substantially harmed you, consult an attorney to explore promissory estoppel and other potential remedies.
  • Be cautious about making promises or assurances you don’t intend to keep, as they could be enforced under promissory estoppel even if not a binding contract.

FAQs:

• • Is promissory estoppel the same as a breach of contract claim? No, promissory estoppel is a separate cause of action that can apply when some contract elements are missing.
  • Is a written commitment necessary for legal enforcement? No, an oral promise can support a promissory estoppel claim, but a writing can provide stronger evidence.
  • What if I relied on a promise but didn’t suffer a large financial loss? Promissory estoppel generally requires a substantial detriment, economic or otherwise.
  • Can anything be done to prevent a promissory estoppel claim? Carefully word any promises to include contingencies, disclaimers, or a clear intent not to be bound.
  • How can you argue against a promissory estoppel claim? Argue promise was unclear, reliance was unreasonable, the detriment wasn’t substantial, the promisor lacked authority, etc.

Examples:

• • Anne’s boss promises her a promotion if she moves across the country, so she does. But when she arrives, the promised position isn’t available.
  • During deal talks, Big Store assures Sally’s Small Shop it will purchase her goods, so she ramps up production. But Big Store walks away, leaving Sally overstocked.
  • First Bank promises Jen it will refinance her mortgage, so she skips a payment in reliance. But First Bank then denies her application, damaging her credit.
  • State College promises Tim $4K in scholarship funds, which he relies on in enrolling. But it later rescinds the funds, saying the pledge wasn’t contractual.
  • Maria promises her sister $10K for a down payment on a house. Her sister signs the contract but Maria reneges, saying it was a casual promise, not a legal commitment.

How to Proceed:

• • In employment, get any promises about the terms, compensation or length of your employment in writing, ideally in a formal contract.
  • When negotiating business deals, be cautious about relying on assurances made before a definitive agreement is reached. Pushing for contingent or non-binding language can help.
  • Don’t skip payments or make financial moves assuming a promised loan modification will go through until you have a binding written agreement.
  • Charities should be cautious about relying on pledges to incur substantial obligations before funds are received, as they can be hard to enforce if the donor reneges.
  • With family promises, consider formalizing substantial ones in writing, like a promissory note. Avoid relying on casual assurances to make weighty financial or life decisions.

FAQs:

• • Can an employer be stopped from reneging on a promise of at-will employment? Potentially, if the promise was clear and induced reasonable detrimental reliance, but at-will employment is hard to overcome.
  • What if I made business plans based on a negotiating partner’s assurances? Promissory estoppel may apply if you relied on a clear promise to your detriment, but courts often give leeway in deal talks.
  • Can I enforce a promise to forgive a debt? Yes, if you substantially relied on that promise to your detriment, promissory estoppel may prevent the lender from reneging.
  • How strictly are charitable pledges enforced? It varies, but courts increasingly enforce them under promissory estoppel if the charity substantially relied to its detriment.
  • Do promises within families differ from business agreements?? Courts may be a bit more lenient in family cases but still require a definite promise inducing reasonable injurious reliance.

Examples:

• • Ted has emails from his boss promising a 10% raise if he achieved certain milestones, which he later did. But his boss denied ever promising a raise.
  • Shannon signed a 1-year lease and bought plane tickets for her move, reasonably relying on a promised job. She has receipts to document these obligations incurred.
  • ABC Charity has records showing it hired more staff and expanded programs based on a $500K pledge from a wealthy donor who later reneged, causing substantial losses.
  • Joe has bank documents proving he loaned his brother $20K relying on his promise to repay in a year. Letting his brother break that promise would unjustly enrich him at Joe’s expense.
  • Carla has witness testimony that her neighbor orally promised to sell her his classic car “one day.” No money was exchanged and terms weren’t finalized, so it likely lacks consideration and definite offer/acceptance.

How to Proceed:

• • Preserve all records of promises made to you, whether texts, emails, voice messages, letters, notes or other writings. Avoid relying on purely verbal assurances.
  • Document the actions you took in reliance on the promise and why that reliance was reasonable. Keep dated records and receipts of expenses incurred or opportunities foregone.
  • Maintain clear evidence of the detriments and losses you suffered from your reliance, such as additional debts, damaged credit, lost profits, costs expended, etc.
  • Gather proof that allowing the promisor’s assurances to go unenforced would lead to injustice, such as unjust enrichment, unclean hands, bad faith or egregious harm to you.
  • Note any missing contract elements like consideration, formal offer/acceptance, or definite terms, as promissory estoppel can overcome these gaps where justice requires.

FAQs:

• • What if I can’t prove the exact dollar value of my detrimental reliance? Courts can estimate your damages based on available evidence or sometimes order restitution or reliance damages.
  • Does the promisor’s intent matter in a promissory estoppel case? Not necessarily. The core issues are a clear promise, reasonable reliance, detriment and injustice, not the promisor’s intent.
  • What if the promisor claims they were just engaging in “puffery” or casual talk? The court assesses whether a sensible individual would view it as a sincere pledge that induces dependence.
  • Is it enough that I relied or do I have to prove that reliance was reasonable? Your reliance must be deemed reasonable under the circumstances, not just blind faith in an unclear promise.
  • What defenses nullify a promissory estoppel claim? Arguing there was no clear promise, reliance was unreasonable, no real detriment occurred, or it wasn’t unjust to not enforce the promise.

Examples:

• • Tony’s boss argues that saying he’d “see what he could do about getting him a raise this year” was too indefinite to be an actionable promise.
  • A store claims a customer’s reliance on a low-level employee’s unauthorized promise of a steep discount was unreasonable given his role.
  • A charity argues a donor’s pledged funds weren’t actually critical, so losing them didn’t cause detrimental reliance since it found replacement grants.
  • A promisor asserts that not enforcing an informal social promise isn’t truly unjust, just a disappointment, as those are made and broken all the time.
  • A company argues that a manager’s promise to extend a customer’s warranty was invalid since she didn’t have authority to alter company policies.

How to Proceed:

• • Make any promises you give as clear, definite and actionable as possible to refute arguments they were too ambiguous or incomplete to induce reasonable reliance.
  • When relying on a promise, ensure your reliance is justified given the circumstances, promisor’s authority, promise clarity, and relationship context.
  • Document how substantially you altered your position and the real losses you suffered in reasonable reliance on the promise to prove true detriment.
  • Be prepared to argue that failing to enforce the promise would lead to real injustice, not just disappointment, given the promisor’s conduct and superior position.
  • Clarify the authority of agents or representatives making promises on an entity’s behalf and consider getting the entity’s clear written endorsement of significant promises.

FAQs:

• • What level of detail is required for a promise to be “definite”? The promise should be clear and unambiguous enough that a reasonable person would understand it as a binding commitment.
  • When is reliance considered “unreasonable”? When a reasonable person wouldn’t rely so heavily on that promise given its tentative nature, the promisor’s lack of authority, or the casual context.
  • How much detriment is considered “substantial” enough? It must be an actual, significant harm, loss or change in position, not just a minor inconvenience or disappointment.
  • What factors determine if non-enforcement is truly “unjust”? The court weighs the totality of circumstances, the parties’ relationship, promisor’s conduct, promisee’s vulnerability, public policy, etc.
  • How can I confirm an agent has authority to make a binding promise? Ask for written confirmation from their superior or the entity itself endorsing their full authority for that specific promise.

Examples:

• • Gina sues for expectation damages to receive the $5K bonus she was clearly promised if she landed a major client, which she did.
  • Hank seeks reliance damages to recoup the $30K in moving, housing and other expenses he incurred in relocating for a job offer that was revoked.
  • Beth pursues restitution from her ex for the value of the free childcare her mom provided for a year based on his promise to pay her back, which unjustly enriched him.
  • XYZ Corp sues for specific performance to force a programmer to deliver the custom software he promised to make in exchange for keeping his job.
  • Carrie gets an injunction barring her landlord from renting her apartment to someone else after she relied on his promise to renew her lease.

How to Proceed:

• • Assess what remedy would make you “whole” if a promise you substantially relied upon was broken – receiving the promised benefit, recouping your reliance losses, etc.
  • Detail and document the full value of your reliance damages in case expectation damages (getting the full promise) aren’t awarded so you can at least be restored.
  • Consider an unjust enrichment/restitution angle if your reliance on a promise unjustly benefitted the promisor so you can potentially recover that improper gain.
  • Evaluate if specific performance is a viable remedy to still get the essence of what was promised to you if monetary damages won’t suffice or are hard to prove.
  • Look into injunctive relief to stop the promisor from taking actions contrary to their promise and compel conduct consistent with what they committed to do.

FAQs:

• • When are expectation damages most appropriate in promissory estoppel cases? When the promised benefit is clear, definite and easy to monetize, and justice requires putting the promisee in the position they would have been in if the promise were kept.
  • What if I can’t prove exactly how much I would have gained if the promise were kept? The court may still award reasonable reliance damages to reimburse you for actual, proven out-of-pocket losses incurred in reliance on the promise.
  • When is restitution an appropriate “fall-back” remedy? When the promisor was unjustly enriched at your expense while you relied on their promise, allowing them to retain that benefit would be inequitable.
  • Is specific performance commonly awarded in promissory estoppel claims? Not very commonly, as courts prefer monetary damages and only grant specific performance when damages won’t adequately remedy the injustice.
  • What steps can boost my odds of securing an injunction? Show that you’re likely to succeed on your promissory estoppel claim, you face irreparable harm without an injunction, and the equities tilt in your favor.

True or False?

• • 1. Promissory estoppel can apply even without a legally binding contract.
    • A) True
    • B) False
  • 2. The promisor’s intent is crucial in a promissory estoppel claim.
    • A) True
    • B) False
  • 3. The promise must be in writing to be enforced under promissory estoppel.
    • A) True
    • B) False
  • 4. An ambiguous or incomplete promise can support promissory estoppel.
    • A) True
    • B) False
  • 5. Promissory estoppel usually arises in business contexts, not personal promises.
    • A) True
    • B) False

Answers:

• • 1. A) True. Promissory estoppel is a remedy that can enforce promises unsupported by the consideration or formality of a binding contract.
  • 2. B) False. The core issues are a clear promise, reasonable reliance, detriment and injustice, not the promisor’s subjective intent.
  • 3. B) False. Oral promises can be enforced under promissory estoppel if the other key elements are met, though a writing provides stronger evidence.
  • 4. B) False. The promise must be sufficiently clear and definite for the promisee to reasonably rely upon it to their detriment.
  • 5. B) False. While promissory estoppel does apply to business promises, it can also enforce serious personal promises in family, social and charitable contexts.

Disclaimer

This article provides general information on promissory estoppel and its potential applications. This guidance is not official legal counsel and does not create a lawyer-client arrangement. Laws on promissory estoppel can vary by jurisdiction and legal outcomes depend heavily on the unique facts of each case.

For personalized guidance on a potential promissory estoppel matter, please consult a licensed attorney in your area. Most reputable lawyers offer free consultations to evaluate your issue and explain your options. Relying on this article’s general information cannot substitute for tailored legal counsel on your specific situation.