ATE's to Consideration

Question 1

Promissory Estoppel (PE)

what is it?

Answer 1

 Allows a plaintiff to sue defendant for failing to carry out a legally unenforceable promise (not supported by consideration) when the plaintiff relied to her detriment on the promise

Question 2

PE general rule

Answer 2

• 1. Promise made by promisor that is reasonably expected to induce the promisee’s actions or forbearance
• 2. Promisee reasonably relied on the promise
• 3. AND enforcement of the promise is necessary to avoid injustice

Question 3

PE rule elaboration

Answer 3

• There must be a promise to establish PE
• And Reasonableness of reliance should depend on reasonableness of promisee’s expectation that promisor will voluntarily perform the promise, not the belief that promisor could be legally compelled to do so!!

Question 4

PE’s take on promise

what is it?

Answer 4

a promise is a manifestation of intention to act or refrain from acting in a specified way, so made as to justify a promise in understanding that a commitment has been made

Question 5

PE’s take on Promise

what if the promise is implied rather than expressed?

Answer 5

Whenever the promisor makes an implied promise from the surrounding circumstances (facts) to promisee –> the promise relied on by the promisee need not be express but may be implied from a party’s conduct

Question 6

PE element 1

Answer 6

• 1. Promise made by promisor that is reasonably expected to induce the promisee’s actions or forbearance
     o RE: That is promisor could/should have been reasonably foreseen to induce promisee to rely on such a promise
      Ex. element is met because ________ (promisor) reasonably foresee (promisee) would rely on promise and _____(act/forbear conduct)

Question 7

PE element 2

Answer 7

• 2. Promisee reasonably relied on the promise
     o RE: That is promise does reasonably induce promisee to act/forbear in reliance of promisor’s promise
      Ex. element is met because ________ (promisee) reasonably relied on promise by ______ (act/forbear conduct)

Question 8

PE element 3

Answer 8

• 3. AND enforcement of the promise is necessary to avoid injustice
     o That is if the promise is not enforced ______ (promisee) will suffer injustice bc ______ will have to

Question 9

Promises bw family

Answer 9

o RULE: Consideration is usually excluded from dealings bw family members

 bc promises in the family context are likely to be actuated mainly by feelings of affection and altruism rather than by the expectation of a quid pro quo in return.

Question 10

Quasi K/Restiution

what is it?

Answer 10

provides recovery for a plaintiff when no contract exists provided that the plaintiff conferred a benefit on the  and it would be unjust for the  to keep the benefit given the circumstances. (NO PROMISE REQ!!)

Question 11

QUASI K element 1

Answer 11

 1) One person (plaintiff) confers an economic “benefit” (goods or
services) on another person (the defendant/recipient)

Question 12

QUASI K element 2

Answer 12

 2) The person conferring the benefit (plaintiff) did so with the
reasonable expectation of being compensated for its value

Question 13

QUASI K element 3

Answer 13

 3) AND The person receiving the benefit (defendant) would be unjustly
enriched if he/she was allowed to retain the benefit without
compensation because either:
* (a) the person receiving the benefit knew (or should have known) of the expectation of compensation by the other party OR
* (b) there is a unique situation where the person conferring the benefit has a reasonable justification for conferring it without the other person’s knowledge.

Question 14

QUASI K Exception

Answer 14

 Restitution is not available if:
* A party officiously confers a benefit upon another, OR
* A party has conferred a gratuitous benefit without expectation of compensation

Question 15

QUASI K

Caution on Officious Intermeddler

Answer 15

Aperson who officiously confers a benefit upon another is not entitled to restitution.

A person is deemed an officious intermeddler if the “interference in the affairs of others is not justified by the circumstances.

Question 16

If Quasi K is established –>what is the remedy

Answer 16

 Prof says quantum merit will be the reasonable value given that must be restored back to D

Question 17

Where do we usually see Situation where Quasi K recovery by a person conferring the benefit

Answer 17

• Rendering of emergency services to a person that has been injured or an unconscious person
• OR medical services rendered by hospital where hospitalization is involuntary or due emergency
• OR services or goods provided, such as to protect the property of another, but not paid for

Question 18

Promissory Restitution (PR)

what is it?

Answer 18

 where one party has conferred a benefit on another party and it would be unjust to retain the benefit without compensating the other party.

Question 19

What kinds of issues trigger PE?

Answer 19

Past Consideration and Moral Obligation

Question 20

for PR what elements apply to PR?

Answer 20

Same elements as Quasi K

Question 21

Where do you usually see PR

instance 1

Answer 21

Employer/Employee Cases where employer promises some benefit or monetary remuneration for past services (i.e. faithful and loyal service over the years).

Question 22

Where do you usually see PR

instance 2

Answer 22

A person provides services, such as medical care, or some service for the purpose of protecting property and recipient/beneficiary makes a promise after-the-fact to pay or otherwise compensate the person

Question 23

Where do you usually see PR

instance 3

Answer 23

Promise by a debtor to pay a debt that is otherwise not enforceable (because the statute of limitations has expired, for example).

Question 24

Where do you usually see PR

instance 4

Answer 24

Contract entered into without capacity – by a minor, for example - that is subsequently ratified upon reaching the age of majority