Reliance Definition and Legal Meaning
On this page, you'll find the legal definition and meaning of Reliance, written in plain English, along with examples of how it is used.
What is Reliance?
(n) Reliance is the dependence on somebody’s assurance, promises statements, clime etc in doing some thing, taking any action or in decision making etc. For example reliance on the quality assurance given by the dealer.
History and Meaning of Reliance
Reliance is a term used to refer to the dependence on somebody's promise or assurance in performing an action, making decisions, or taking any step. In other words, reliance occurs when someone relies on the statement or assurance given by someone else while performing any task. This term has been used in various fields, including law, finance, and business, to indicate the importance of trust and confidence in the reliability of others.
Examples of Reliance
Company A purchased new machines for their factory based on the assurance of the seller about their performance and quality. The company relied on the seller's promises and invested a considerable amount of money.
A student relied on the information provided by their teacher in preparing for their exam. They trusted that the teacher's guidance and assurance would help them achieve good grades.
A man relied on his financial advisor in making an investment decision. He trusted the advisor's information and invested a significant sum of money into the stock.
Legal Terms Similar to Reliance
Promissory estoppel: This term is used in contract law to indicate that a promise made by one party to another is enforceable by law, even in the absence of a formal contract.
Misrepresentation: This term is used in tort law when a false statement is made by one party to another, inducing them to enter into a contract or carry out a particular action.
Fraud: Fraud is another term used in tort law, which involves deception or misrepresentation with the intent of causing harm to another party.