promissory estoppel

a basis for a civil suit that is intended to compensate an injured party who relied on a non-contractual promise to his or her detriment. A claim based on promissory estoppel is a demand for justice that the law is unable to deliver. Here's how promissory estoppel works. Without forming a contract, party A makes a promise to party B. Party B relies on A's promise in a substantial way. When A goes back on its promise, B is harmed. Because there is no actual contract, only a promise, B has no legal remedy. In this case, promissory estoppel provides B with a means of seeking redress for injuries suffered as a result of the broken promise.

Ogden works for the city government of a small town in one of the western United States. A semi-professional sports team approaches the city about providing a home for the sports club. After a series of discussions, the sports team promises the city that it wants to move to the town. Based on this promise and without a contract, the city begins to build a new sports stadium. Before construction is completed, however, the team notifies the town that it won't be coming after all. Without a contract the city has no legal remedy and pursues an equitable remedy claiming promissory estoppel.