In Nevada, detrimental reliance, which may also be called promissory estoppel, means that one party is made to perform their obligations under a contract. When a party to a contract files a detrimental reliance claim, they will have to show that their reliance was reasonable.
The reasonableness of the reliance is reviewed on a case-by-case basis, which considers all of the surrounding facts. The term detrimental means that a party suffered some type of harm, typically a financial loss.
In these situations, the legal remedy often involves awarding money, called monetary damages. These damages are awarded to compensate the relying party that suffered economic harm because of their reliance. If an individual has any questions or concerns about detrimental reliance issues, it is important to have a lawyer consultation in Nevada.
What Are Some Examples of Detrimental Reliance Claims?
There are several different areas of law under which a detrimental reliance claim can arise, including contract law, employment law, and child support law.
Employment Law and Contract Law
With employment and contract law, detrimental reliance issues can arise related to an employment contract. A court may require an employer to pay a worker a bonus when they were promised one, even if a contract did not exist.
Requiring this under the legal theory of detrimental reliance is typically only done when there is the possibility of an injustice. It is important to have help from a Nevada attorney when making a detrimental reliance claim.
Nevada recognizes detrimental reliance and requires the claimant to show the elements of a promise, reasonable reliance, harm or loss caused by the reliance, and that the promise needs to be enforced to prevent an injustice.
It may be helpful to review an example where an employer promises a worker a bonus for their previous work and contributions. The worker confirms they will get this bonus and explains they want to use it as a down payment on a home.
If their employer assures them they will get a bonus, suppose, based on that, the worker goes forward with the home purchase. Although a contract was not likely formed in this case, the worker may be able to make a detrimental reliance claim if they do not receive their bonus.
Child Support Law
A claim for detrimental reliance can also arise related to child support issues. Typically, a person is not required to pay child support for their stepchildren unless they legally adopt them.
It is important to note, however, even if a person does not adopt their stepchild, they can, in some cases, still be held liable for support under the theory of detrimental reliance.
If their spouse and child rely on them for support and would be in a worse position if support was stopped, they may be required to continue supporting the child. For example, if a stepparent was offered a job that pays well and provides benefits but they do not accept the job, leaving their spouse and children unable to support themselves, they may still have to support their stepchild.
A Nevada lawyer can help someone understand whether they may have a detrimental reliance claim or if a detrimental reliance claim may be made against them.
What Are Some Other Considerations?
There are additional considerations in detrimental reliance claims. One is whether the Statute of Frauds writing requirement applies to a contract, often for real estate and the sale of goods over $500.
If the parties in a claim did not meet the contract writing requirement, the contract may not be enforceable in court. In these situations, a court cannot resolve the issue, which means that the parties will not be able to seek a resolution through the legal system.
There can be a negative situation when someone is owed money. A party may be able to ask a court to enforce an oral contract even when a contract should have been in writing, but only in very specific situations.
Can Reliance on a Promise Become a Contract?
If the parties did not have a binding contract in place, even though one party made a promise to the other, in rare cases, their promise may be enforced under the theory of detrimental reliance in contract law. This is only done in situations where enforcing the promise is necessary to avoid an injustice.
What Do I Need To Prove for a Promise To Become a Contract in Nevada?
In Nevada, there are elements that a party making a claim has to prove in order for a promise to become a contract, including:
- A party made a promise
- Relying on that promise was reasonable or foreseeable
- The claimant actually and reasonably relied on the promise
- Their reliance was detrimental
- An injustice will happen if the promise is not enforced
When Is a Promise Not a Contract?
A contract and a promise are different things. A promise is when someone offers something without the other party having to do anything in return.
For example, if someone says they will give their friend new sunglasses for their 40th birthday but they do not, the friend cannot make a breach of contract claim because they did not provide anything in return.
With a legally binding contract, both of the parties involved will have legal obligations. Each party’s obligation is made in exchange for the other party’s promise to fulfill their own legal obligation.
When Is It Reasonable To Rely on a Promise?
It may be reasonable for an individual to rely on someone’s promise when the circumstances surrounding them making that promise suggest that they expect the other party to rely on the promise. For example, if a friend promises someone a million dollars when they just filed bankruptcy, it would not be reasonable to rely on that promise.
What Constitutes Reasonable Reliance in Nevada?
In Nevada, even if it would be reasonable to rely on a person’s promise, the reliance itself must also be reasonable. For example, if someone promises a friend $100, it would not be reasonable if that friend relied on this promise, stating that not getting that money would prevent them from putting down a down payment on a vehicle.
Do I Need a Lawyer?
If you have any concerns or questions about detrimental reliance in Nevada, it is important to reach out to a Nevada contract lawyer. Detrimental reliance is a complex legal concept which is often difficult to show in court.
Your lawyer can review your situation and determine if you may have a claim for detrimental reliance and how you can pursue a legal remedy in court. You can find a contract lawyer in your area of Nevada using LegalMatch’s free lawyer matching services in as little as 15 minutes.
Simply go to the LegalMatch website and fill out the submission form. Here, you can enter any preferences you may have about your lawyer, such as language and religious preferences.
In as little as one business day, you will begin receiving responses from attorneys who are licensed and prescreened. These responses will give you information about each attorney’s background, fees, and client reviews.
Some member lawyers will provide free consultations, meaning you can potentially reach out to multiple lawyers at no cost and see who best fits your budget and needs.
