Promissory Estoppel

Promissory Estoppel is a legal principle that enforces a promise, even in the absence of a formal written contract, to prevent injustice or unfairness when one party relies on that promise to their detriment. It operates as a doctrine of equity, ensuring that a promise cannot be revoked if doing so would harm the party who relied on it.

Key Features of Promissory Estoppel

1. Existence of a Promise A clear and definite promise must have been made by one party to another. The promise can be oral or written, not necessarily a formal contract.

2. Reliance on the Promise The party to whom the promise is made must have acted or refrained from acting based on the promise. This reliance must result in some detriment or disadvantage if the promise is withdrawn.

3. Enforcement to Prevent Injustice The principle prevents the promisor from going back on their word, even if a formal contract does not exist. It is based on equity and fairness rather than strict legal rules.

4. No Need for Consideration Unlike standard contracts, promissory estoppel can enforce promises without the need for consideration (something of value exchanged).

 Importance of Promissory Estoppel Protects parties from unfair withdrawal of promises. Provides legal remedy in verbal or informal agreements. Ensures equitable treatment in contractual relationships. Widely used in commercial, employment, and property law to prevent injustice.

Example: Employer promises an employee a bonus at the end of the year. Employee relies on this promise, makes financial commitments, but the employer later refuses to pay. Promissory estoppel can enforce the employer’s promise to prevent injustice.