promissory estoppel

Promissory estoppel allows a promisee to recover damages when they reasonably and detrimentally relied on a promise, and the promisor could have reasonably foreseen that reliance. It applies when enforcing the promise is necessary to avoid injustice.

For example, if a promisor makes a promise that induces the promisee to spend significant money or take harmful action; such as selling property in reliance on the promise, and the promise is later not fulfilled, the promisee may recover under promissory estoppel. See Hoffman v. Red Owl Stores, Inc.

Promissory estoppel may apply even if a formal contract does not exist, such as when there is no consideration to support a binding agreement. Compare with contract law principles requiring mutual consideration.

[Last reviewed in July of 2025 by the Wex Definitions Team]

Keywords

• contract
• contract law
• promissory estoppel
• ESTOPPEL
• BILATERAL CONTRACTS

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