What damages are recoverable in a case of promissory estoppel?
A) profits that the promisor expected
B) profits that the promisee expected
C) an amount necessary to restore the promisee to the position he or she would have been in had the promisee not relied on the promise
D) an amount necessary to restore the promisor to the position he or she would have been in had the promisor not relied on the promise

Question

Quizplus · Accepted Answer

In a case of promissory estoppel, the damages that can be recovered are those necessary to restore the promisee to the position they would have been in had they not relied on the promise. This is known as reliance damages. The court will aim to put the promisee in the same position they would have been in if the promise had not been made, and they had not relied on it. Therefore, options A and B (profits that either the promisor or promisee expected) are incorrect. Option D is also incorrect as it does not consider the detriment caused to the promisee, which is the focus of promissory estoppel.

What Damages Are Recoverable in a Case of Promissory Estoppel