Design-Build Institute of America (DBIA) Exam 3 Practice

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What term describes protection for a party who is reliant on someone else's actions?

Damages

Specific Performance

Promissory Estoppel

Promissory estoppel protects a party who relies on another’s promises. When one side makes a clear, definite promise and the other side reasonably relies on it to their detriment, enforcing that promise prevents an injustice even if there isn’t a formal contract or consideration. This remedy focuses on preventing unfair outcomes from reliance, not simply on breach of a contract.

It differs from damages, which are awarded to cover the harm from a breach; from specific performance, which compels the actual performance of a contract; and from quantum meruit, which pays for the reasonable value of work when no contract governs the relationship.

Quantum Meruit