Alternative theories of enforcement Flashcards
Remedies under alternative theories
a. Expectation damages = traditional contract
b. Reliance damages = promissory estoppel
c. Restitution = quasi contract
Alternative theories other than a traditional, enforceable contract
PQM - Pouncing Quells Mice
P - Promissory estoppel
Q - Quasi-contract (aka unjust enrichment)
M - Moral obligation & subsequent promise
Promissory estoppel
- Promise
- Justifiable reliance (definite and substantial action)
- Detriment (substantial)
FR DJ (Father DJ) was estopped denying existence of the K
F - Foreseeably
R - Reasonably
D - Detrimentally relied on a promise
J - Enforcement required to avoid JUSTICE
Usually applies where gift promises induce action (promise to give church $1M, they spend $100k rehabbing the library)
Reliance damages usually
R2 §90
Drennan v. Star Paving (subcontractor bid)
Quasi-contract elements
He inCURREd a detriment outside of a K:
Conferred benefit Unjustly enriched Reasonable expectation of being compensated Reason to know OR Excuse for conferring w/o D's knowledge
Distinct from implied-in-fact contracts, where there is mutual assent
Moral obligation with subsequent promise
Past consideration sufficient where there is a moral obligation.
Webb v. McGowan - P saves employee and D promises to pay sum and does 8 years. D dies and P sues to enforce payments from estate and wins.
Contrast with
Mills v. Wyman - P gave medical care to D’s son, D promised $$ but reneged, P loses. PAST CONSIDERATION invalid.
Difference between the cases, employee-employer relationship, history of payments (P relied upon them) = MORAL OBLIGATION.
Quantum meruit
Measures how much payment your work MERITS
Implied-in law vs. implied in fact - what do they mean?
Law - quasi contract - D was enriched at P’s expense
Fact - manifested by conduct rather than express agreement
Quasi contract damages type
Restitution
Quasi contract case example
Cotnam v. Wisdom - Physician-P recovered for emergency medical services rendered
What is the main difference between promissory estoppel and a traditional, enforceable K?
Consideration is not necessary for PE.