Contracts
Promissory Estoppel
Definition
Promissory estoppel is an equitable doctrine that makes a promise enforceable even without consideration when the promisor should reasonably expect the promise to induce reliance, the promisee actually relies to their detriment, and injustice can only be avoided by enforcing the promise. Under Restatement (Second) of Contracts Section 90, the remedy may be limited to the extent of reliance damages rather than full expectation damages.
Example
A franchisor promises a prospective franchisee that a franchise agreement is forthcoming, inducing the franchisee to sell their existing business. The court may enforce the promise under promissory estoppel.