What is a promissory estoppel?

Promissory estoppel is a common law concept in North Carolina that allows a Court to enforce a promise made by one party to another party for certain types of agreements. It prevents the promisor from denying the promise or raising any defenses they may otherwise have had, such as statute of limitations, laches, or lack of consideration. Generally, a promissory estoppel claim must have four elements: (1) there must have been a clear and definite promise; (2) the promise must have been made with the intent to be legally bound; (3) the promisee must have relied upon the promise; and (4) the reliance must have been to the detriment of the promisee. Promissory estoppel is especially useful in North Carolina’s debtor and creditor law because it can be used to enforce an oral promise a debtor makes to a creditor regarding payment. For example, if a debtor makes a promise to a creditor that they will pay part or all of a debt and the creditor relies on this promise, then the court can enforce the promise if the creditor can prove all the elements of promissory estoppel are present. This means that even if the agreement made between the debtor and creditor would not usually be enforceable, it can become legally binding under the doctrine of promissory estoppel.

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What is a promissory estoppel?

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