Alternative Contract Theories Flashcards
What is promissory estoppel/detrimental reliance under RS 90
A promise which the promisor should reasonably expect to induce action or forbearance on the part of the promise or a third person and which does induce such action or forbearance is binding if injustice can be avoided only by enforcement of that promise
How does detrimental reliance work in the context of an at-will relationship?
Even though parties can break off their obligations at any point in an at-will relationship, statements made by one party to the other may allow for detrimental reliance if the party reasonably relied on those statements to their detriment
How did the plaintiff detrimentally rely on the defendant in D&G Stout v. Bacardi
In Bacardi, two companies were in an at-will relationship. Bacardi states that they wont stop distributing products to D&G. Based on these statements, D&G remains in business and declines to sell to a potential buyer. Bacardi pulls out one day later and D&G has to go back to the buyer and sell for a lower price. Here, even though Bacardi was free to walk at any time, D&G relied on Bacardi’s statements to their detriment.
What is the takeaway from Midwest v. Orion
Hell if I know please send help
What is the general idea of restitution / unjust enrichment?
It’s a situation where one party has conferred a benefit onto the other, and for whatever reason the party who received the benefit did not pay for it
What is the measure of recovery in cases of restitution - Quantum Meruit
The reasonable value of the goods or services furnished to the benefited defendant
What will a court do if the value of the benefit the defendant received is difficult to determine in a case for unjust enrichment - Campbell v. TVA
The court can either:
- Default to the contract price
- Use the market value of the good or service
- Use the amount in reliance that the person expended to confer the benefit
