Updated on March 10, 2023
The term promissory estoppel is a doctrine of contract that ensures the execution of a promise made between two parties is executed if there is no legal document or contract between the parties. According to this doctrine, when the promisee has relied on such promise and suffered a loss, the aggrieved party is liable to receive damages to the extent of the loss due to the non-execution of the promise made.
Important points under Promissory Estoppel
The promise made can be oral or written but is reasonable and reliable, thereby making it binding.
The promisee should have suffered a loss due to the non-performance of such a promise.
Execution of the promise is the only way to rectify the injustice that occurred to the promisee. The courts can legally bind the promisor to execute the contract or meet the damages suffered by the promisee.