What damages are recoverable in a case of promissory estoppel?
Asked by: Daniela Bauch | Last update: November 27, 2025Score: 4.9/5 (52 votes)
In a promissory estoppel case, the court in its discretion can award either detrimental reliance damages or expectation damages (including specific performance), whichever it determines better avoids injustice.
What is a recovery for promissory estoppel?
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.
What are 4 conditions where the doctrine of promissory estoppel can be used?
3d 462], the Supreme Court stated the four basic elements of estoppel: (1) the part to be estopped must be apprised of the facts; (2) he must intend that his conduct shall be acted upon, or must so act that the part asserting the estoppel had a right to believe it was so intended; (3) the other party must be ignorant ...
Are promissory estoppel damages limited to reliance damages?
Damages, however, are limited to reliance damages, which means the amount of harm suffered because of the reliance on the promise. While courts generally prefer to award expectation damages, which means the full promised value of the agreement, these are not necessarily available in promissory estoppel cases.
What are the 5 elements of promissory estoppel?
In analyzing the application of section 90, the Washington courts have established five requirements for recovery in promissory estoppel: “(1) a promise which (2) the promisor should reasonably expect to cause the promisee to change position and (3) which does cause the promisee to change position (4) justifiably ...
What is Promissory Estoppel? [No. 86]
What must you prove in a successful promissory estoppel case?
To enforce a promise under promissory estoppel, you'll need solid proof of a clear and definite promise, your reasonable reliance on that promise, a substantial detriment you suffered because of that reliance, and that injustice can only be avoided by enforcing the promise.
What is the remedy for promissory estoppel?
In a promissory estoppel case, the court in its discretion can award either detrimental reliance damages or expectation damages (including specific performance), whichever it determines better avoids injustice. Tynan v.
Can you recover expectation and reliance damages?
It has been held that expectation loss and reliance loss are mutually exclusive to prevent double recovery.
What are the four main types of damages?
- Compensatory damages. ...
- Punitive damages. ...
- Nominal damages. ...
- Liquidated damages.
Can you sue for promissory estoppel?
Can that party recover compensation for the money it spent? There's no contract, so the party cannot sue for a breach. But it can sue under a legal doctrine known as promissory estoppel. When a party suffers some kind of loss by relying on another party's promises, promissory estoppel could provide monetary relief.
How do you win a promissory estoppel claim?
The elements of a promissory estoppel claim are: (1) a promise clear and unambiguous in its terms; (2) reliance by the party to whom the promise is made; (3) [the] reliance must be both reasonable and foreseeable; and (4) the party asserting the estoppel must be injured by his reliance."
What are the limitations of promissory estoppel?
- There has to be an existing legal relationship between the parties.
- Must have been (detrimental) reliance on the promise.
- Cannot be inequitable for promisor to go back on the promise.
- A "shield not a sword"
- It suspends rights and does not get rid of them.
What is the exception to promissory estoppel?
Therefore, as a general rule" the doctrine of estoppel will not be applied against the State in its governmental, public or sovereign capacity. An exception, however, arises in the application of estoppel to the State when it is necessary to prevent fraud or manifest injustice.
What is the postbox rule?
The mailbox rule, also called the posting rule, refers to the default rule in contracts law for determining when an offer was accepted . Under the mailbox rule, an offer is considered accepted the moment the offeree mails their letter, rather than when the offeror receives the letter in the mail.
What is an example of detrimental reliance?
Examples: If a company promises to give an employee a promotion if they complete a certain project, and the employee relies on this promise by working extra hours and putting in extra effort, but the company fails to follow through on the promise, the employee may have a claim for detrimental reliance.
Can you sue someone who promised you money?
The short answer is yes, you may have a claim for someone who broke a promise to you. Now, depending on the nature of that promise, we may have different types of the cause of action that could be brought. The most common that I see is a breach of contract.
What damages are recoverable for breach of contract?
Are you wondering about seeking damages for breach of contract? There are five important types of damages that might be available, depending on your situation: compensatory damages, specific performance, an injunction, liquidated damages, or rescission.
What are vindictive damages?
They are also sometimes called “exemplary damages” or “vindictive damages” because they are meant to make an example of the defendant, deter others from engaging in the same conduct, and vindicate society's injury in the harm that was done.
What are promissory damages?
Promissory estoppel helps injured parties to recover on promises made that have led to economic loss when not met. Promissory estoppel helps injured parties recover damages they suffer due to broken promises by another party.
What losses are recoverable?
The starting point for recoverable damages is direct financial losses resulting from the breach. For example, if a supplier fails to deliver materials, causing your production to stop, you can claim the direct cost of finding alternative materials and any lost production time.
What are reasonable reliance damages?
Reliance damages are valued by a party's reliance interest for the reasonably foreseeable amount. They put the injured party in the same financial position as if the contract had never been formed.
Who is entitled to recover compensatory damages?
If you or someone you love were injured in an accident that is able to be attributed to the negligence, recklessness, or carelessness of another person or entity, you could be eligible to recover compensatory damages via a personal injury insurance claim or lawsuit.
How do you win promissory estoppel?
- The defendant made a clear and unambiguous promise.
- The plaintiff acted in reliance on the defendant's promise.
- The plaintiff's reliance was reasonable and foreseeable.
- The plaintiff suffered an injury due to reliance on the defendant's promise.
How do I sue for promissory estoppel?
Promissory estoppel requires that there must have been (1) a promise, (2) on which the party seeking to recover relied to his or her detriment, (3) in a way the person making the promise expected or should have expected, and (4) the reliance resulted in an injustice which can be cured only by enforcement of the promise ...
What is the mirror rule?
In contract law , the “mirror image rule” is a doctrine stipulating that any acceptance of an offer is deemed to be an unconditional assent to the terms of the offer exactly as it is, without any changes or modifications .