Also known as:detriment to the promisee · detriment
Written by attorneys · grounded in primary & secondary sources — see below
Consideration consisting of the relinquishment of a legal right that the promisee would otherwise have been entitled to exercise. The performance or forbearance must be bargained for and induced by the promise.
Sources & Authorities
How it applies
Common Examples
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Forbearance on Equipment Sale
Deanna Davenport promised to forgo selling specialized machinery to a competitor if Dominion Capital would extend a loan. Deanna refrained from the sale and held the equipment ready. Dominion later refused the loan. Deanna's relinquishment of her right to sell the machinery supplied the required detriment.
Reliance on Land Development
Diane Dawson promised to halt residential construction near a feedlot if Spur Industries would relocate its operations. Diane stopped all building and incurred holding costs. Spur refused to move. Diane's surrender of her development rights constituted the bargained-for detriment.
Select any source to read its text and confirm it supports the definition.
Cases
Uniform Acts
Model Codes
Restatements
Dictionaries
Spur Industries, Inc. v. Del E. Webb Development Co.494 P.2d 700 (Ariz. 1972)
Forbearance from Mining
Dustin Donovan promised not to extract coal from subsurface rights if Pennsylvania Coal would support surface stability measures. Dustin ceased mining operations. Pennsylvania Coal later withdrew support. Dustin's surrender of extraction rights supplied the legal detriment.
Pennsylvania Coal Co. v. Mahon260 U.S. 393 (1922)
Opportunity Foregone in Joint Venture
Denise Donovan promised to abandon independent real-estate deals if Meinhard would join a shared investment. Denise declined other profitable opportunities. Meinhard later excluded her from a new project. Denise's relinquishment of separate business chances provided the detriment.
Daniel Diaz promised to reveal his name as a source if Cowles Media would keep the identity confidential. Daniel disclosed the information. Cowles later published his name. Daniel's surrender of anonymity rights constituted the required detriment.
Cohen v. Cowles Media Co.501 U.S. 663 (1991)
Opt-Out Right in Class Action
Damian Decker promised to remain in a class action if Phillips Petroleum would accept jurisdiction over absent members. Damian waived his right to opt out. Phillips later challenged the court's authority. Damian's relinquishment of the opt-out right supplied the detriment.
Phillips Petroleum Co. v. Shutts472 U.S. 797 (USSC 1985)
Common questions
Frequently Asked
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Does forbearance from a legal right always qualify as detriment to a promisee?+
Yes. Forbearance from conduct one has a legal right to engage in, when bargained for, constitutes legal detriment even if the promisee suffers no economic loss.
How does detriment to a promisee differ from benefit to the promisor?+
Detriment focuses on the promisee's surrender of a legal right. Benefit to the promisor is a separate but related concept. Either can supply consideration, but the definition of detriment centers on the promisee's relinquishment.
Can reliance expenditures alone establish detriment to a promisee?+
Reliance expenditures can demonstrate the change in position that satisfies detriment when they are made in response to a bargained-for promise, as seen in cases involving oral agreements and subsequent performance.
410 U.S. 113 (1973)Constitutional Law
…of rights to the people, is broad enough to encompass a woman's decision whether or not to terminate her pregnancy. The detriment that the State would impose upon the pregnant woman by denying this choice altogether is apparent. Specific and direct harm medically diagnosable even in early pregnancy may be involved.…