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Simple English definitions for legal terms
detrimental reliance
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A quick definition of detrimental reliance:
Term: DETRIMENTAL RELIANCE
Definition: Detrimental reliance is when one person depends on the actions or promises of another person and takes action based on that trust, which ultimately harms the first person's position. This reliance can be used as a substitute for consideration and make a promise enforceable as a contract. For example, if someone promises to pay for your college education and you rely on that promise to attend college, but they later break their promise, you may have a claim for detrimental reliance.
A more thorough explanation:
Definition: Detrimental reliance refers to the situation where one party relies on the actions or representations of another party, which causes a worsening of the first party's position. This reliance may lead to a promise being enforceable as a contract, even if there was no consideration involved.
Examples: If a company promises to give an employee a promotion if they complete a certain project, and the employee relies on this promise by working extra hours and putting in extra effort, but the company fails to follow through on the promise, the employee may have a claim for detrimental reliance. Another example could be if a landlord promises to make repairs to a rental property, and the tenant relies on this promise by signing a lease and paying rent, but the landlord fails to make the repairs, the tenant may have a claim for detrimental reliance.
These examples illustrate how detrimental reliance can occur when one party relies on the promises or actions of another party, and suffers harm as a result of that reliance.