Define: Reliance

Reliance, in a legal context, refers to the act of placing trust or confidence in someone or something based on certain representations, promises, or assurances. It involves acting or making decisions in reliance on the belief that another party will fulfil their obligations, perform as expected, or uphold their commitments. In contract law, reliance can give rise to legal rights and obligations, particularly in cases where one party suffers harm or loss due to the other party’s failure to fulfil their promises or obligations. For example, if one party relies on the representations of another party in entering into a contract and suffers losses as a result of the other party’s misrepresentation or breach of contract, they may be entitled to seek legal remedies, such as damages or rescission of the contract. Reliance is a fundamental concept in many areas of law, including contract law, tort law, and equitable doctrines, and it plays a crucial role in determining the rights and liabilities of parties in legal disputes.

This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.

This glossary post was last updated: 29th March, 2024.