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Detrimental Reliance

Detrimental Reliance

Definition

A legal principle used to force one party to perform its obligations under a contract on the ground that nonperformance would leave the other party in a prejudicial position. It is applied when the second party’s reliance on performance was reasonably foreseeable, actual reliance occurred, the result of reliance was prejudicial to the relying party, and injustice can only be prevented by enforcing the contract.

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