Promissory estoppel is an equitable theory of recovery that permits enforcement of a promise when one or more elements necessary to create an enforceable contract are missing. The elements of promissory estoppel are generally: (1) a promise; (2) foreseeability of reliance by the promisor; (3) substantial and reasonable reliance by the promisee to its detriment; and (4) enforcing the promise is necessary to avoid injustice.
In Delaware, promissory estoppel serves as a legal remedy that allows a party to enforce a promise even when a formal contract does not exist or certain elements for a contract are lacking. The doctrine is based on the principles of equity and fairness, aiming to prevent injustice that would result from the promisor's failure to fulfill a promise that the promisee has reasonably and substantially relied upon to their detriment. The key elements that must be established for promissory estoppel to apply in Delaware are: (1) a clear and definite promise, (2) the promisor's expectation or foreseeability that the promisee will rely on the promise, (3) actual reasonable and substantial reliance by the promisee, and (4) a finding that enforcement of the promise is necessary to avoid an injustice. Delaware courts will consider these factors when determining whether to apply promissory estoppel in a given case.