1

Running head: Business Law

An Assignment

On

Business Law

Submitted by

Swastika Pokharel

LC00016000073

Forth Semester

Nepal Business College

Lincoln University

Author Note

This assignment was prepared for Business Law, taught by

Dr.Devi Prasad Thapa.

Major Assignment 2

Unfairness is the core of doctrine of promissory Estoppels.’ Critically analyze the statement
in the light of Provisions under present Nepalese contract Act.

Promissory estoppels is the idea that a promise can be enforced by the law if, after relying on
that promise, the promisee is injured or suffers a resulting loss. The idea of promissory estoppel
is that the promisor is barred from arguing that the underlying promise at the heart of the case
should not be legally upheld. While promissory estoppel is enforceable in all fifty states, the
requirements associated with the concept vary from state to state. To explore this concept,
consider the following promissory estoppels.

Doctrine of Promissory Estoppel

Promissory Estoppel. In the law of contracts, the doctrine that provides that if a party changes
his or her position substantially either by acting or forbearing from acting in reliance upon a
gratuitous promise, then that party can enforce the promise although the essential elements of a
contract are not present

For example, you are the principal of a small high school. A musician approaches you to discuss
implementing a music program on campus. Excited about the possibilities this will bring to your
students, you begin planning for the program. You order construction of a new building complete
with soundproofing and a stage. Next, new furniture and fixtures, drums and tubas are delivered.
You may even hire staff to manage the new music program. Then, in one fell swoop, the promise
is retracted. The musician simply changes his mind. You might think that, without a contract,
there is no recourse to recover not only the expenses but the embarrassment of having this
promise broken.

Well, the law cannot help you with the embarrassment, but the doctrine of promissory
estoppel can help you to recover your losses. It states that an injured party can recover damages
if those damages were the result of a promise made by a promisor and the promise was
significant enough to move the promisee to act on it. There are specific elements that must be
present:

 Promisor made a promise significant enough to cause the promisee to act on it

Major Assignment 3

 Promisee relied upon the promise

 Promisee suffered a significant detriment
 Relief can only come in the form of the promisor fulfilling the promise

And, there need not be a contract involved. In fact, when promissory estoppel is used, it is
because a contract did not exist. Now, it may not be as simple as this. The court will look at a
few things. First, the court will decide whether there was detrimental reliance, or a change in the
position of the promisee, who acts based on the promise and becomes damaged as a result. An
interesting court case will help to explain.

Elements of Promissory Estoppels

There are five elements of promissory estoppels that must exist in order for the concept to be
enforced. The five elements of promissory estoppels according to Nepalese contract act are
listed below:

 Legal Relationship – Some form of legal relationship must exist, or be anticipated to exist,
between the parties, such as a contractual relationship.
 Promise – It must be shown that a promise was made between the parties to the action that
led the injured party to assume that some sort of action was to be taken. Such a promise
must be reasonably reliable, or believable.
 Reliance – It must be shown that the injured party relied on the promise that was made, and
took some action based on that promise.
 Detriment – The party that relied upon the promise must have suffered some sort of
detriment or loss, which puts him in a worse position than when he started.
 Unconscionability – In must be shown that it was unfair for the promisor to break his
promise to the promisee.

Promisory estoppels can be considered as legal prohibition

towards any unfair agenda by the legal provisions that is according to the law and by the law.
Major Assignment 4

Promisory estoppels help to prevent unfair bearing by any civil. This means that it prevents the
unfair bearing to any civil that is prevents the unfair or misguidance.
Conclusively , ‘Unfairness is the core of doctrine of promissory Estoppels.

In conclusion, promissory estoppel is one of the elements of contract law that must be considered
when drafting or entering into a contract. The doctrine of promissory estoppel allows a party to
recover the benefit of a promise made even if a legal contract does not exist. Promissory estoppel
is an important doctrine I contract law I which a non contractual promise lacking consideration.
The doctrine allowing recovery on a promise made without consideration when the reliance on
the promise was reasonable, and the promisee relied to his or her detriment