Contracts I

Promissory Estoppel


Restatement Second of Contracts § 90

Promise Reasonably Inducing Action or Forbearance

View on LexisNexis

  1. A promise which the promisor should reasonably expect to induce action or forbearance on the part of the promisee or a third person and which does induce such action or forbearance is binding if injustice can be avoided only by enforcement of the promise. The remedy granted for breach may be limited as justice requires.
  2. A charitable subscription or a marriage settlement is binding under Subsection (1) without proof that the promise induced action or forbearance.

Reliance, also known as promissory estoppel, requires doing something to one's own detriment due to someone else's promise.

Such reliance must be reasonable.