detrimental reliance


Also found in: Dictionary, Thesaurus, Medical, Legal, Wikipedia.
Related to detrimental reliance: Equitable estoppel, Promissory estoppel

detrimental reliance

Taking an action or failing to take an action because of a representation made by another person that turned out to be untrue.

Example: Jake called his mortgage company to find out the remaining balance due on his home loan. The lender sent Jake a letter advising him the payoff was $28,312. The sum was small enough that Jake decided to sell his car to pay off the home loan, quit his job, and take a year off to write a novel. After he sent the money in, the mortgage company advised him that it had made a mistake and the payoff was really $48,312, so he needed to pay an additional $20,000 to satisfy the mortgage. A court may apply the theory of estoppel against the mortgage company and force it to satisfy the loan without any additional money, because Jake had detrimental reliance on the mortgage company's representations.

Mentioned in ?
References in periodicals archive ?
Many courts have interpreted the doctrine so broadly as to give non-signatories virtually the exact same rights under the contract as a signatory, and have omitted basic limitations on the breadth of estoppel, such as the requirements of misrepresentation and detrimental reliance.
the injustice were defined as the detrimental reliance suffered by the
Implicit in the forbearance and detrimental reliance arguments, although rejected on the facts, is the position that both principles offer alternative grounds for the enforcement of modified contracts, provided there is a legal right of breach and a defensive estoppel argument respectively.
157) Assuming that there was detrimental reliance, the important question would then be what the correct interpretation of the clauses contained in the lease was.
Such equitable remedies are different than damages awarded to remedy the intentional tort of common law fraud and deceit which requires all of the elements of misrepresentation, reasonable detrimental reliance, and proximate cause as well as damages.
115) They argue that a reliance measure of damages is appropriate in Section 90 cases because the promisee's right of action is founded on detrimental reliance.
Based on the unassailable premise that RICO provides redress only to those actually injured by the operative predicate acts, other appellate courts also reason that a showing of detrimental reliance on the alleged mail fraud is required to ensure the existence of a direct relation between the conduct alleged and the resulting injury.
The first suit had been tried on a theory akin to detrimental reliance and unfair government regulation while the second lawsuit had been premised on the county's alleged tortious interference with the waste hauling arrangement.
Detrimental reliance by the IRS on the (mis)representation; and
The court added in a footnote that when the conclusive presumption in Section 622 applies, a party does not need to demonstrate detrimental reliance.
The Brock court found no detrimental reliance on the employer's representations, and did not hold the employer responsible for continued coverage.
Other risks and uncertainties that may cause Ballard's actual results to be materially different include general economic and regulatory changes, detrimental reliance on third parties, successfully achieving our business plans and achieving and sustaining profitability.