... continued from Front
A sturdy contract is measured by its precision. It lays out the roles, responsibilities, remedies, and consequences, minimizing room for misunderstandings and costly disputes. WHEN A PROMISE STILL HOLDS WEIGHT But what if no formal contract was signed? This is where promissory estoppel steps in. It’s a legal principle that stops someone from backing out of a promise if the other person relied on it and suffered as a result. Under Nevada law, promissory estoppel requires proof that: • The promise was specific and unambiguous. • The other party relied on it in a way that made sense. • That reliance led to real and measurable harm. • Upholding the promise is the only fair outcome. In short, you can’t promise something, watch someone rely on it heavily, and then shrug it off without consequences. A COMMON EXAMPLE: BIDS IN CONSTRUCTION Imagine a general contractor solicits bids from subcontractors for a major project. One subcontractor submits a competitive price, and the contractor uses that bid to secure the main contract. But then, the subcontractor backs out after realizing they underpriced the work. Even without a formal contract, the subcontractor could be bound under promissory estoppel because the contractor relied on their promise to their detriment, a principle Nevada courts have repeatedly upheld. WHY THIS DISTINCTION MATTERS The lesson is simple:
Formal contracts offer stronger, clearer protections, but even informal promises can carry legal weight if reliance and harm occur. Smart business owners should: • Prioritize written agreements whenever possible. • Seek legal review before relying heavily on verbal promises. • Understand that their promises, even casual ones, can become enforceable obligations.
6770 S. McCarran Blvd, First Floor Reno, NV 89509 775.448.6070 SierraCrestLaw.com
Made with FlippingBook Ebook Creator