What is promissory estoppel?

Promissory estoppel is a legal doctrine that prevents a party from retracting a promise made to another party if the latter has relied on that promise and suffered a detriment as a result. In other words, if one party makes a promise to another and the second party relies on that promise to their detriment, the first party may be prevented from breaking the promise.

Promissory estoppel is often invoked in cases where there is no formal contract between the parties, but one party has made a promise that the other has relied on. It is particularly relevant in situations where one party has suffered a financial loss or other detriment as a result of relying on the promise.

In order for promissory estoppel to be invoked, the following elements typically need to be present:

1. A clear and definite promise must have been made by one party to another.
2. The promise must have been reasonably relied upon by the second party.
3. The second party must have suffered a detriment as a result of relying on the promise.
4. Enforcing the promise is necessary to avoid injustice.

Promissory estoppel is a powerful legal doctrine that can be used to enforce promises even in the absence of a formal contract. It is a particularly important tool in situations where parties have made informal agreements or where one party has made a promise that the other has relied on to their detriment.