Doctrine of Promissory Estoppel

Doctrine of Promissory Estoppel

Promissory Estoppel is a legal principle that prevents a person from going back on a promise when another person has relied on that promise and suffered a loss as a result.

A clear promise must have been made.
The other party must have relied on the promise and acted upon it.
The promisor cannot withdraw the promise if it would cause injustice or loss to the promisee.

Example:
If a government promises a tax concession and a company invests money based on that promise, the government may be prevented from withdrawing the concession later.