Alternative Theories to Satisfy K Flashcards
Promissory Estoppel/ detrimental reliance
(1) A Promise
(2) W/ reasonable expectation that the promisee would rely on it and
(3) The Promise did induce justifiable action or forbearance by the promisee
(objective standard on reliance and reasonableness)
(4) Enforcement of promise is necessary to avoid injustice
(5) Remedy may be limited as justice requires
Quasi-K/ unjust enrichment
Not traditional K (no mutual assent usually)/ But restitution available if
(1) P conferred a measurable benefit to the d
(2) P conferred the benefit w/ the reasonable expectation of being compensated for its value AND
(3) The D would be unjustly enriched if he were allowed to retain the benefit w/o compensating the P b/c
(a) D knew or had reason to know of P expectation; or (b) P had a reasonable excuse of conferring benefit w/o D knowledge
Restitution Recovery vs Breach Recovery
Restitution- Economic value that P conferred to d in the quasi-k
Breach- Recovery of future, reliance and expectation of K
Moral Obligation + subsequent promise
Past consideration is NOT consideration
- Some courts may enforce a promise supported by past consideration if there is a Strong moral obligation and justice so requires.
Two approaches
1 Mills v. Wyman
denied no “bargain”
2 Webb v. Mcgown
Accepted bargain already started and it occurred over time
For Promissory Estoppel what is justifiable action or forbearance by the promisee
Is whether a reasonable person in the promisee’s position would have been induced by the promise to engage in the particular action or forbearance