reasonable reliance

reasonable reliance

n. particularly in contracts, what a prudent person would believe and act upon if told something by another. Typically, a person is promised a profit or other benefit, and in reliance takes steps in reliance on the promise, only to find the statements or promises were not true or exaggerated. The one who relied can recover damages for the costs of his/her actions or demand performance if the reliance was "reasonable." If the promisor says he "owned the Brooklyn Bridge," reliance on that statement is not reasonable. In a complaint the language would read something like: "in reasonable reliance on defendant's statement (or promise), plaintiff did the following...." (See: contract)

References in periodicals archive ?
The Tax Court has stated: "Unconditional reliance on a tax return preparer or CPA does not by itself constitute reasonable reliance in good faith; taxpayers must also exercise 'diligence and prudence.
CalCPA's amicus brief argues that the Court of Appeal should affirm the trial court's opinion, and that proof of reasonable reliance is necessary for at least three reasons:
Law enforcers cannot lull people or businesses into reasonable reliance only to later attack, citing a regime change.
37 regulations, tax professionals must base all written advice on reasonable factual and legal assumptions, exercise reasonable reliance, and consider all relevant facts that the professional knows or reasonably should know.
Reasonable Reliance (ii) Aggravation of Position as Reasonable Reliance (iii) Abandoning the Reliance Requirement C.
That is, practitioners must base all written advice on reasonable factual and legal assumptions, exercise reasonable reliance, and consider all relevant facts that the practitioner knows or should know.
court may use a reasonable reliance standard to determine whether the
However, the Eleventh Circuit Court declined to follow the new precedent announced in Gant because it determined that the exclusionary rule did not apply when the police conducted a search in objectively reasonable reliance on well-settled precedent, even if that precedent was overturned.
works out the extent and limits of reasonable reliance on Josephus in the next three chapters.
My argument is that regulatory duties constitute a distinct category of public authority liability, and that the state should not owe a duty of care in the absence of reasonable reliance on the state activity.
instinct[s],' and familiar considerations of fair notice, reasonable reliance, and settled expectations offer sound guidance.
The New Jersey Supreme Court strictly construing "stare decisis" recited that to establish common-law fraud, a plaintiff must prove the five substantive elements: "(1) a material misrepresentation of a presently existing or past fact; (2) knowledge or belief by the defendant of its falsity; (3) an intention that the other person rely on it; (4) reasonable reliance thereon by the other person; and (5) resulting damages.