detrimental reliance


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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.

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(66) The defendant could assume responsibility to provide the plaintiff with a positive benefit, not merely for taking due care to prevent a detrimental reliance loss.
Despite the potential influx in litigation against cruise lines for the medical negligence of its on-board staff, plaintiffs still must establish sufficient facts to prove either an actual agency relationship or detrimental reliance on a reasonable belief of an agency relationship.
Her Honour held that the estoppel claim failed on the basis that the services provided were not done in reliance on the representations made by the deceased, or alternatively, if they were she was not satisfied that they had suffered financial or other detrimental reliance of such a nature to make it unconscionable for the deceased later to have resiled form the assurances he made to them.
Instead, prejudice, or detrimental reliance, is an element of an entirely different doctrine-estoppel, which looks to the effect on the opposing party regardless of the intent of the waiving party.
In addition to their fraud and breach of fiduciary duty claims, the plaintiffs also assert claims against Guidry for detrimental reliance and payment of a thing not owed.
For example, an idea such as detrimental reliance, introduced into the Civil Code for the first time in 1984, can scarcely survive outside the courts; a plea of detrimental reliance is a trial lawyer's tactic for salvaging some value from a contract suffering from a possibly fatal flaw.
Conventional estoppel does not destroy the need to have privity in order to make a contract; it merely states that the existence of a contract will not be a bar to proving that the promisor has committed a civil wrong vis-a-vis the third party through invocation of a shared convention and detrimental reliance. (128) The famous case of Glanzer v.
Regent/Eugene LLC, and BPM Senior Living Co.: Plaintiff alleges negligence, detrimental reliance. Suit seeks $21,371.
DAWSON, GIFTS AND PROMISES: CONTINENTAL AND AMERICAN LAW COMPARED 88-90, 188-91 (1980) (discussing the failure of either French or German courts to attach independent significance to detrimental reliance as a basis for promissory enforcement).
(35) Accordingly, he contended, there is no detrimental reliance that counsels against its overturn.
Before any detrimental reliance, the reader is urged to obtain consultation, advice, and opinions from licensed professionals.
The court also went on to note that the taxpayer did not rely upon the waiver to establish any detrimental reliance because the director issued an order to return the money within weeks of its disbursement.