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 Arizona, promissory estoppel serves as a legal remedy that allows a court to enforce a promise even when a formal contract does not exist or when certain elements for a contract are lacking. The doctrine is based on principles of fairness and is designed to prevent injustice that would result if the promise were not enforced. The elements required to establish promissory estoppel in Arizona include: (1) a clear and unambiguous promise by the promisor, (2) reasonable and foreseeable reliance on the promise by the promisee, (3) actual reliance on the promise to the promisee's detriment, and (4) a finding that enforcement of the promise is necessary to avoid an injustice. If these elements are met, Arizona courts may compel the promisor to fulfill the promise or provide compensation for the losses incurred due to the reliance on the promise.