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 Montana, promissory estoppel is recognized as a legal doctrine that can be used to enforce a promise even when a formal contract does not exist or is otherwise unenforceable. The elements required to establish promissory estoppel in Montana are consistent with the general description provided: there must be a clear and definite promise, the promisor must expect or foresee that the promisee will rely on the promise, the promisee must indeed rely on the promise in a substantial and reasonable way, and this reliance must result in a detriment to the promisee. Finally, the application of promissory estoppel must be necessary to prevent an injustice. Montana courts will consider these factors when determining whether to enforce a promise under the doctrine of promissory estoppel. This doctrine serves as a means of achieving fairness when the strict rules of contract law would otherwise result in an unfair outcome.