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Neal spent $100 in reliance on the contract, which constituted Neal's reliance interest. Since reliance damages equal to the value of the reliance interest of the injured party, Matt owes Neal $100. This puts Neal in the same economic position as if the contract never happened. In a promissory estoppel context, consider the following example:
In many jurisdictions of the United States, promissory estoppel is an alternative to consideration as a basis for enforcing a promise. It is also sometimes called detrimental reliance. The American Law Institute in 1932 included the principle of estoppel into § 90 of the Restatement of Contracts, stating:
Estoppel forms part of the rules of equity, which were originally administered in the Chancery courts. Estoppel in English law is a doctrine that may be used in certain situations to prevent a person from relying upon certain rights, or upon a set of facts (e.g. words said or actions performed) which is different from an earlier set of facts.
Proprietary estoppel case law has, however, divided on the question of what kind of assurance and what kind of reliance must be present. In Cobbe v Yeoman's Row Management Ltd , a property developer claimed an interest in a group of Knightsbridge flats after his expense in obtaining council planning permission. [ 6 ]
An Appellate Division, First Department panel rejected the reliance-based argument of promissory estoppel by the plaintiff, indicating that he would not suffer an unfair injury if the statute of ...
The role of reliance may be better assessed by distinguishing between "weak reliance" and "strong reliance". Weak reliance occurs when the applicant was made aware of and merely believed in the truth of the representation. Strong reliance, on the other hand, occurs where the applicant acted upon the representation and consequently faced detriment.
One type of estoppel recognised in Canada's common law jurisdictions is estoppel by convention, which operates where three criteria are satisfied: 1) a "manifest representation" of a "shared assumption of fact or law" pertaining to the application or construction of a contractual term, 2) one party acts in reliance of the "shared assumption" in ...
However, in common law systems the concept of culpa in contrahendo, a form of estoppel, is increasingly used to create obligations during pre-contractual negotiations. [ 29 ] [ 30 ] Estoppel is an equitable doctrine that provides for the creation of legal obligations if a party has given another an assurance and the other has relied on the ...