Promissory Estoppel Legal Meaning and Definition

Here is a simplified definition of the legal term Promissory Estoppel.

Promissory Estoppel (noun)

Promissory estoppel refers to a legal principle that prevents a party from denying or going back on a promise that has led to substantial reliance, to the detriment of the promisee. This term typically involves three key elements:

1. A false or insincere promise made by one party (promisor)
2. Another party (promisee) relies on the promise
3. The promisee suffers economic loss due to this reliance

If these elements are present, the promisee can often enforce the promise in a court of law, despite the lack of a formal contract. The court may require the promisor to fulfill the promise or compensate the promisee for their loss.