§ 19-5 Contract - Doctrine of Promissory Estoppel

• Library: South Carolina Requests to Charge - Civil (SCBar) (2016 Ed.)

§ 19-5 Contract - Doctrine of Promissory Estoppel

Promissory estoppel is a doctrine that holds an estoppel may arise from the making of a promise, even though without consideration, if it was intended that the promise should be relied upon and in fact it was relied upon, and if a refusal to enforce it would be virtually to sanction the perpetration of fraud or would result in other injustice.

Detrimental action or forbearance by the promisee in reliance on a gratuitous promise, within limits constitutes a substitute for consideration, or a sufficient reason for enforcement of the promise without consideration. This doctrine is known as promissory estoppel. A promisor who induces substantial change of position by the promisee in reliance on the promise is estopped to deny its enforceability as lacking consideration. The reason for the doctrine is to avoid an unjust result, and its reason defines its limits. No injustice results in refusal to enforce a gratuitous promise where the loss suffered in reliance is negligible, nor where the promisee's action in reliance was unreasonable or unjustified by the promise.

Essentially, promissory estoppel means that a promise which the promisor should reasonably expect to induce action or forbearance of a definite and substantial character on the part of the promisee and which does induce such action or forbearance is binding if injustice or fraud can be avoided only by enforcement of the promise. Estoppel prevents a person from showing the truth contrary to a representation of fact made by him after another has relied on the representation.

Where promissory estoppel is available as a remedy, it is a substitute for consideration. A promise binding under principles of promissory estoppel is a contract.

The elements of promissory estoppel are:

(1) the presence of a promise unambiguous in its terms;
(2) reasonable reliance on the promise by the party to whom the promise is made;
(3) the reliance is expected and foreseeable by the party who made the promise;
(4) the party to whom the promise is made must sustain injury in reliance on the promise.

The plaintiff must produce evidence of an unambiguous promise. "Unambiguous" means susceptible of only one meaning. "Reliance" means the plaintiff is induced into a definite and substantial detrimental action or forbearance. The plaintiff must prove that his reliance was expected, reasonable, and foreseeable by the defendant. Finally, without injury, there is no cause of action...