Pardolesi, Paolo --- "Promissory estoppel" [2017] ELECD 620; in Monateri, Giuseppe Pier (ed), "Comparative Contract Law" (Edward Elgar Publishing, 2017) 469

Book Title: Comparative Contract Law

Editor(s): Monateri, Giuseppe Pier

Publisher: Edward Elgar Publishing

ISBN (hard cover): 9781849804516

Section: Chapter 19

Section Title: Promissory estoppel

Author(s): Pardolesi, Paolo

Number of pages: 43

Abstract/Description:

Promissory estoppel took shape in the nineteenth century to smooth out the rigidity of the doctrine of consideration: it is possible to suggest that promissory estoppel provides a valuable investment protection mechanism in so far as it bars the promisor from opportunistic withdrawal of his undertaking when it can be expected that the promisor’s behaviour has induced the justified reliance of the promisee (so that ignoring such reliance would be contrary to justice). Nevertheless, it simultaneously poses the problem of the adequacy of such a protection, especially where there is a margin for trading ex post which would render the imposition of liability unnecessary. Therefore, we will see that the focus shifts from the reasonableness of the conduct during the negotiations and moves in the direction of the obligation to act in good faith. This being the original inspiration, the theory has seen further developments in North America, which created an exception and became, to a greater extent, an alternative principle to the traditional theory of consideration based on the bargaining principle (which requires that there be some type of exchange bringing value, monetary or otherwise, to both parties).