When may reliance damages be applicable?

Reliance damages are specifically applicable in cases of promissory estoppel, which occurs when a party reasonably relies on a promise made by another, even in the absence of an enforceable contract. When a promise induces action or forbearance on the part of the promisee, and the promisee relies on that promise to their detriment, reliance damages seek to reimburse the promisee for expenses incurred based on that reliance. This legal principle ensures that individuals are protected when they act on promises that they reasonably believe to be binding, thus preventing unjust enrichment at their expense.

In contrast, other options do not match the criteria for reliance damages. For instance, property title disputes typically involve legal claims over ownership rather than issues of reliance on a promise, while a lack of a formal contract does not preclude the application of promissory estoppel if reliance can be demonstrated. Similarly, property appraisal processes are concerned with determining value rather than addressing reliance on promises. Therefore, the application of reliance damages is distinctly relevant in the context of promissory estoppel where the promisee acts on a reliance that results in loss or incurred costs.