Also known as: actions in reliance · detrimental reliance
Written by attorneys · grounded in primary & secondary sources — see below
A party's change of position undertaken in reasonable reliance on a promise or representation. The change supplies the basis for enforcing the promise despite the statute of frauds or for estopping denial of rights created by the representation.
Anthony Arnold told Amelia Amari that a pharmaceutical patent was fully approved when he knew approval had been denied. Amelia spent substantial sums upgrading her manufacturing facility in reliance on the statement. When the truth emerged and the investment failed, Amelia recovered her pecuniary loss because her action in reliance on the misrepresentation was justifiable.
Avalon Pharmaceuticals sent a false solvency report to a class of banks it expected would extend credit. Alexis Archer, a member of that class, advanced funds after reviewing the report. When the company collapsed, Alexis recovered her loss because her action in reliance fell within the transaction type the maker intended to influence.
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Ashford Manufacturing submitted a paving subcontract bid to Albert Allen's general contracting firm. Albert used the bid price to win the prime contract and began performance. When Ashford refused to honor the bid, Albert recovered damages measured by the cost of cover because his action in reliance on the bid price locked in the prime contract.
Andrew Avery assured Audrey Ashton that partnership status would follow her transfer to the firm's tax group. Audrey relocated her family and declined other offers in reliance on the assurance. When the partnership never materialized, Audrey established liability because her action in reliance on the representation produced cognizable harm.
Aether Technologies orally agreed to modify delivery schedules with Alpine Mining. Alpine invested in new equipment after the modification. When Aether later insisted on the original written terms, Alpine defeated the no-oral-modification clause because its action in reliance on the waiver made retraction unjust.
Two adults began an intimate relationship after a statute criminalizing their conduct was invalidated. They structured their lives around the new legal regime. When enforcement was later threatened, the prior action in reliance on the change in law supported the claim that continued prosecution would be inequitable.
A promise the promisor should reasonably expect to induce action or forbearance becomes enforceable if the promisee actually relies and injustice can be avoided only by enforcement. The remedy is limited as justice requires.
The landowner must have made a representation about a servitude that made substantial change of position reasonably foreseeable. The claimant must then have changed position in reasonable reliance, and recognition of the servitude must be necessary to avoid injustice.
Yes, when the maker intends or has reason to expect the recipient to act in a particular type of transaction and the recipient justifiably relies to its pecuniary loss.
Retraction is permitted only upon reasonable notice unless it would be unjust in light of a material change of position already made in reliance on the waiver.
The remedy is limited as justice requires and may be restricted to restitution or partial enforcement rather than full expectation damages.
…also id. , at 844 ("Liberty finds no refuge in a jurisprudence of doubt"). The holding in Bowers , however, has not induced detrimental reliance comparable to some instances where recognized individual rights are involved. Indeed, there has been no individual or societal reliance on Bowers of the sort that could counsel against…