Within contract law, promissory estoppel refers to the doctrine that a party may recover on the basis of a promise made when the party's reliance on that promise was reasonable, and the party attempting to recover detrimentally relied on the promise. Promissory Estoppel is one of the elements of contract law that must be considered when drafting or entering into a contract or agreement. Promissory Estoppel. A promise must normally be in a deed (legal agreement or contract) or supported by consideration to be enforced. The principle of estoppel however may allow a promise to be enforced even though these requirements are not satisfied. The doctrine of promissory estoppel is an equitable doctrine. Like all equitable remedies, it is discretionary, in contrast to the common law absolute right like right to damages for breach of contract. The doctrine has been variously called ‘promissory estoppel’, ‘equitable estoppel’, ‘quasi estoppel’ and ‘new estoppel’. In a general sense, Promissory Estoppel is a legal doctrine used in American law, which allows a party to recover on a promise, even if the promise was made without a formal consideration. In essence, a Promissory Estoppel prevents an individual from arguing that an underlying promise offered should not be upheld.
I. INTRODUCTION. The doctrine of promissory estoppel was first recognized in section both contract law and promissory estoppel theories of recovery.' 2. 9. Promissory Estoppel and Traditional Contract Doctrine, 78 YALE L.J. 343 lated legal doctrines operate as economic regulations; they shape the bargaining.
The doctrine of promissory estoppel allows a party to recover the benefit of a promise made even if a legal contract does not exist. Use of this doctrine relies on Within contract law, promissory estoppel refers to the doctrine that a party may recover on the basis of a promise made when the party's reliance on that promise Promissory estoppel also has similarities to the common law principle of waiver by which right to performance in accordance with the contract may be lost by a Doctrine of Promissory Estoppel Issues. 2102 words (8 pages) Essay in Contract Law. 28/02/19 Contract Law Reference this Law Student. Jurisdiction(s): United 8 Jun 2019 Estoppel is the result of equity principles. It is the recent development in the principles of contracts act where one party has by his words, conduct
Professor Emeritus of Contract Law, New York University School of Law. This article grew out See Eric Mills Holmes, Restatement of Promissory Estoppel, 32 the Doctrine of Consideration be Abolished from the Common Law?, 49 HARV.
Doctrine of promissory estoppels cannot be build against those agreements which are in contravention of the law. If a promise made by an executive officer is beyond his power, no estoppel can be imposed. The purpose of the promissory estoppel doctrine is to make the resulting detrimental reliance by another party operate as a substitute for consideration. The value of the plaintiff’s detrimental reliance need not be identical with, or equated to, the value of the defendant’s promise. Knowing the doctrine of consideration in contract law is important for any business person as there can a sense of mistrust when doing business in the western world. Contract law began in the common law of the Middle Ages. There were concerns at the time about property law and safety that made the formation of contract law a necessity. Promissory estoppel is a term used in contract law that applies where there may not otherwise be an enforceable contract. The importance of promissory estoppel in contract law is that it has enabled legal obligations, which fall into the category of contract law but fail to show any consideration, to be argued for.