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Cyberchron v. Calldata Systems Development, Inc

Law Dictionary
CASE BRIEFS

Law Dictionary

Featuring Black's Law Dictionary 2nd Ed.
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Contracts Keyed to Farnsworth

Held. Plaintiff had established the three elements necessary for promissory estoppel in NY. There was a clear and unambiguous promise because Defendant pressured Plaintiff to produce as if there were not a problem, reasonable reliance upon the promise and an unconscionable injury and the resulting injustice could only be remedied by invoking promissory estoppel.
Working overhead costs could be recovered if it was shown that there was a demonstratable past history of ongoing business operations, and could reasonably be allocated to specific projects according to Plaintiff’s standard accounting practices.


Discussion. Plaintiff was allowed to recover for period in which Grumman had directed Plaintiff to proceed with production as if there had been an agreement on the terms. That was the extent of the promise reasonable to rely on. After it had notice there was still no contract the cost could no longer be a basis for recovery and no lost profits would be awarded based on reliance alone.
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