CONCEPT – PROMISSORY ESTOPPEL

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 CONCEPT – PROMISSORY ESTOPPEL

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• What Is Promissory Estoppel? It is the legal principle that a promise is enforceable by law, even if made without formal consideration when a promisor has made a promise to a promisee who then relies on that promise to his subsequent detriment (i.e. loss). 
• What it intends to achieve: Promissory estoppel is intended to stop the promisor from arguing that an underlying promise should not be legally upheld or enforced. This doctrine is part of the law in the United States and other countries, although the precise legal requirements for promissory estoppel vary.
• What it helps achieve: Promissory estoppel serves to enable an injured party to recover on a promise. There are common legally-required elements for a person to make a claim for promissory estoppel: a promisor, a promisee, and a detriment that the promisee has suffered. An additional requirement is that the person making the claim — the promisee — must have reasonably relied on the promise. In other words, the promise was one that a reasonable person would ordinarily rely on.
• An example: If an employer makes an oral promise to an employee to pay the employee a specified monthly or annual amount of money during the full duration of the employee's retirement, and if the employee then subsequently retires based on a reliance on the employer's promise, the employer could be legally estopped from not delivering on his promise to make the specified retirement payments.
• What is "Estoppel": Estoppel is a legal defense tool used when someone reneges on or contradicts a previous agreement or claim. Estoppel is meant to prevent people from being unjustly wronged by the inconsistencies of another person's words or actions.
• Summary: While Estoppel is a legal principle that keeps people and businesses from, essentially, going back on their word or promise, Promissory estoppel helps injured parties to recover on promises made that have led to economic loss when not met.

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