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 Iowa, promissory estoppel serves as a legal remedy that allows a court 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 not enforcing the promise. The elements required for promissory estoppel in Iowa include: (1) a clear and definite promise, (2) the promisor's expectation or foreseeability that the promisee will rely on the promise, (3) actual and reasonable reliance on the promise by the promisee, and (4) a detriment suffered by the promisee due to this reliance. If these elements are met, Iowa courts may enforce the promise to the extent necessary to remedy the harm caused by the reliance. This doctrine is particularly relevant in situations where the formal requirements of a contract are not met but where one party has acted in reliance on a promise to their detriment.