Promissory estoppel is an equitable theory of recovery that permits enforcement of a promise when one or more elements necessary to create an enforceable contract are missing.
The elements of promissory estoppel are generally: (1) a promise; (2) foreseeability of reliance by the promisor; (3) substantial and reasonable reliance by the promisee to its detriment; and (4) enforcing the promise is necessary to avoid injustice.
In Wisconsin, promissory estoppel is a legal doctrine that allows a party to enforce a promise even when a formal contract does not exist or when certain elements of a contract are missing. The elements required for promissory estoppel in Wisconsin are: (1) a clear and definite promise, (2) the promise must be one that the promisor should reasonably expect to induce action or forbearance on the part of the promisee or a third person, (3) the promise actually induces such action or forbearance, and (4) injustice can be avoided only by enforcement of the promise. This doctrine is intended to prevent a party from suffering harm due to their reliance on a promise when it would be unjust for the promisor to break it. Wisconsin courts will consider the circumstances of each case to determine whether promissory estoppel is applicable, balancing the equities to avoid injustice.