What is a promissory estoppel?

A promissory estoppel is a legal concept used in contract law in California. It is an equitable remedy that can be used when a promise has been made and relied upon by the recipient, even though there is not a written contract. This type of remedy prevents a party from going back on their promise if it would cause the other party to suffer a significant financial or other type of loss. Promissory estoppel is based on the idea that it is not fair to allow someone to go back on a promise that they have made, if another person has relied on that promise and suffered a loss as a result. In this situation, the law allows the injured party to enforce the promise, either by seeking damages or by receiving an order from the court requiring the promisor to perform the promised act. For example, if someone promises to pay someone else money for a service and the second person relies on the promise by purchasing necessary items for the job, the promisor could be estopped from backing out of the promise. This would mean that the promisor would have to pay for the items that the second person purchased for the job, even though there was no written contract. Promissory estoppel is an important part of contract law in California, as it allows parties in certain situations to enforce promises that are not normally subject to contract law, such as oral promises. It provides a form of protection to the party who has relied on the promise, while also allowing the promisor to be held accountable for promises they made.

Related FAQs

What is a rescission of a contract?
What is the effect of a partial payment?
What is the difference between an express and implied contract?
What is a contractual waiver?
What is an anticipatory breach of contract?
What is a conforming acceptance?
What is a contract of indemnification?
What is a condition subsequent?
What is a warranty of title?
What is an executed contract?

What is a promissory estoppel?

Related FAQs

Related Blog Posts