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 North Carolina, 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 binding contract are absent. 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 elements required to establish a claim of promissory estoppel in North Carolina 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 by the promisee on the promise, and (4) a detriment suffered by the promisee as a result of their reliance. If these elements are met, a North Carolina court may enforce the promise to the extent necessary to avoid injustice, even in the absence of a formal contract.