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What is the name of your state? MA
Can someone explain the concept of detrimental reliance and how that effects a contract?
In short, I was hired by an organization to do some fundraising. They told me verbally and in writing that they would provide certain documents that would aid in the fundraising and that certain speakers had confirmed their participation. The organization in question admits that they misrepresented what they could produce, but they did so based on misrepresentations of a third party. They tell me now that in fact that the concept of "detrimental reliance"provides them a defense in this matter. I feel that my contract was with the organization and not the third party (with which they had no contract) and that they should resolve the matter with me and then if they so desire, they can sue the third party. I am holding to the position that they had a legal responsibility to verify the information from the third party. We have agreed in principle that misrepresentation occurred and we have agreed in principle as to the value of the misrepresentation. The only question now is, based on the principle of detrimental reliance, who is obligated to pay out -- the organization or the third party.
Thanks for any information you can supply.
Can someone explain the concept of detrimental reliance and how that effects a contract?
In short, I was hired by an organization to do some fundraising. They told me verbally and in writing that they would provide certain documents that would aid in the fundraising and that certain speakers had confirmed their participation. The organization in question admits that they misrepresented what they could produce, but they did so based on misrepresentations of a third party. They tell me now that in fact that the concept of "detrimental reliance"provides them a defense in this matter. I feel that my contract was with the organization and not the third party (with which they had no contract) and that they should resolve the matter with me and then if they so desire, they can sue the third party. I am holding to the position that they had a legal responsibility to verify the information from the third party. We have agreed in principle that misrepresentation occurred and we have agreed in principle as to the value of the misrepresentation. The only question now is, based on the principle of detrimental reliance, who is obligated to pay out -- the organization or the third party.
Thanks for any information you can supply.