Written by attorneys · grounded in primary & secondary sources — see below
An act or forbearance undertaken by a promisee that the promisee had no prior legal duty to perform or refrain from performing.
Sources & Authorities· 6 primary sources
Select any source to read its text and confirm it supports the definition.
Cases
Uniform Acts
Model Codes
Restatements
How it applies
Common Examples
6
Promisee Forbearance on Job Offer
Lucas Lee receives a job offer from a new employer but promises his current boss he will stay if given a raise. He turns down the competing offer and remains in his role. The surrender of his legal right to accept other employment supplies the legal detriment that supports enforcement of the raise promise.
Promissory Estoppel Reliance Loss
Luna Lang sells her bakery after Red Owl Stores assures her a franchise will be granted. She incurs moving and setup costs before the deal collapses. Her change of position supplies the legal detriment needed to enforce the promise.
Hoffman v. Red Owl Stores, Inc.26 Wis. 2d 683, 698, 133 N.W.2d 267, 275 (1965)
Insurer Bad Faith Forbearance
Layla Lane's insurer refuses to settle a claim within policy limits. She forgoes pursuing her own defense options in reliance on the insurer's duty. The insurer's breach exposes her to excess liability and constitutes legal detriment supporting recovery.
Comunale v. Traders & General Ins. Co.50 Cal. 2d 658
Subcontractor Bid Reliance
Lance Lee, a general contractor, relies on Star Paving's subcontract bid when submitting his own proposal. After the bid is withdrawn he must secure higher-priced paving. The reliance and resulting extra cost establish the legal detriment required for promissory estoppel.
Drennan v. Star Paving Co.51 Cal. 2d 409, 333 P.2d 757 (1958)
Arbitration Clause Modification
Leo Lynch signs an employment agreement containing an arbitration clause after his employer promises continued employment. He gives up the right to litigate future claims in court. The surrender of that legal right supplies the detriment supporting enforceability of the clause.
Armendariz v. Foundation Health Psychcare Services, Inc.24 Cal.4th 83, 114 (2000)
Nephew's Promise of Forbearance
Lucia Lopez promises her nephew $5,000 if he refrains from drinking, smoking, and gambling until age twenty-one. He forgoes those activities for years. The nephew's relinquishment of legal privileges constitutes the legal detriment that makes the promise enforceable.
Hawkins v. McGee84 N.H. 114, 146 A. 641 (1929)
Common questions
Frequently Asked
3
Must legal detriment involve an actual economic loss to the promisee?+
No. Legal detriment exists when the promisee does something they were not obligated to do or refrains from something they had a legal right to do, even if no financial loss occurs.
Supporting sources
How does legal detriment differ from factual detriment?+
Legal detriment focuses on the surrender of a legal right or privilege, whereas factual detriment refers to actual loss or harm in fact.
Supporting sources
Can forbearance from a legal right constitute legal detriment?+
Yes. Refraining from conduct one is legally entitled to engage in, when bargained for, supplies legal detriment and supports consideration.
Supporting sources
501 U.S. 663 (1991)Torts
…as an anonymous source. The reporters expected that promise to induce Cohen to give them the documents, which he did to his detriment. The promise applied only to Cohen's identity, not to anything about the court records themselves. We are troubled, however, by the third requirement for promissory estoppel, namely, the…