What is a promissory estoppel?

A promissory estoppel is a legal concept that is used to enforce a promise that has been made between two individuals or entities, even if there is no contract in place. This concept is used in many areas of the law, including debtor and creditor law in New Jersey. Under New Jersey law, a promissory estoppel allows a creditor to sue the debtor for payment if the debtor has made a promise to pay a certain amount of money. The creditor must prove that the promise was made, that the debtor had an expectation that the promise would be kept, and that the debtor had relied on the promise to their detriment. For example, if a debtor promises to make a payment on time but does not and the creditor is put in a worse financial position, the creditor can sue for payment based on the promise of payment. In some cases, New Jersey courts may allow a creditor to recover more than the original amount owed when a promissory estoppel has been used. This means that a debtor may be liable to pay more than the original amount owed depending on the circumstances. Promissory estoppel is an important legal concept in New Jersey debtor and creditor law. It allows creditors to receive payments that are owed to them, even when no formal contract is in place. It also allows creditors to possibly recover more than the original amount owed and serves as a reminder to debtors that promises should be taken seriously and kept.

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What is a promissory estoppel?

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