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 Alabama, promissory estoppel serves as a legal remedy that allows a party to enforce a promise even when certain elements of a formal contract are absent, provided specific conditions are met. The doctrine is based on the principle of equity, 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 promissory estoppel in Alabama include: (1) the existence of 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 on the promise by the promisee, and (4) a finding that enforcement of the promise is necessary to avoid an injustice. If these elements are satisfied, Alabama courts may enforce the promise as if it were a contract, even in the absence of a formal agreement. This doctrine is particularly relevant in situations where formal contract requirements, such as consideration, are not present, but where the parties have acted in a manner that suggests a binding commitment was intended.