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 Dakota, promissory estoppel is recognized as a legal doctrine that allows a party to enforce a promise even when a formal contract does not exist or certain elements of a contract are missing. The elements required to establish promissory estoppel in North Dakota 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 reasonably rely on the promise to their detriment, and enforcement of the promise must be necessary to prevent injustice. This doctrine is applied by North Dakota courts to prevent a promisor from arguing that an enforceable agreement is not present when they have made a promise that the promisee has relied upon to their detriment. It is an equitable remedy, meaning that it is based on fairness and used by courts to achieve a just outcome when the strict rules of contract law would cause an unfair result.