In the fast-moving world of business, promises fly quickly. Deals are struck over phone calls, decisions are made over lunch, and partnerships are formed with a handshake. But in the eyes of the law, not all promises are created equal, and not every agreement has the same legal power. Understanding the difference between a contractual obligation and promissory estoppel is crucial for Nevada businesses looking to safeguard their rights and avoid costly misunderstandings. WHEN A FORMAL CONTRACT RULES THE DAY For a contract to be legally enforceable, certain conditions must be met. At its core, that means both sides understand what’s being agreed to, something of value is exchanged, and there’s a mutual commitment to formalize the deal. In Nevada, contracts serve as the strongest foundation for enforcing business relationships. When both sides meet these requirements, courts can intervene to award damages, enforce terms, or even order specific performance if one party fails to hold up their end of the deal. Contractual Obligation vs. Promissory Estoppel
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