Question

In a promissory estoppel case, a court will generally award?

1) only reliance damages.
2) specific performance.
3) both reliance and punitive damages.
4) only nominal damages.

Answer 1

In promissory estoppel cases, courts generally award only reliance damages to compensate the promisee for the actual costs incurred from relying on the promise. This relief is instead of punitive damages or nominal damages, and specific performance is typically not applicable in such cases.

Step-by-step explanation:

In promissory estoppel cases, a court will generally award only reliance damages. Promissory estoppel is a legal principle that occurs when a promisor makes a promise that the promisor reasonably expects will cause the promisee to rely on it, and the promisee does indeed rely on the promise to their detriment. Courts apply promissory estoppel to avoid injustice by compensating the promisee for the costs incurred due to their reliance on the promise, rather than to penalize the promisor, which is why punitive damages are not typically awarded.

Furthermore, while specific performance may be a remedy in contract cases where a party has not fulfilled a contractual obligation, in the context of promissory estoppel, which often involves promises that are not formal contracts, courts tend to favor reliance damages. Nominal damages are not commonly awarded in promissory estoppel cases because the focus is on compensating for actual reliance, rather than simply recognizing a legal right was violated without substantial loss.