ATE's to Consideration

Question 1

What are substitutes for consideration?

Answer 1

Alternative Theories of Enforcement (ATE) apply when there is no contract formation with consideration present.

Question 2

What should be considered before assessing whether an ATE applies?

Answer 2

First consider whether all the elements of contract formation are met; if none are met, then consider all ATEs to find a remedy.

Question 3

What is Promissory Estoppel?

Answer 3

It allows a plaintiff to sue a defendant for failing to carry out a legally unenforceable promise when the plaintiff relied to her detriment on the promise.

Question 4

What is required for Promissory Estoppel to apply?

Answer 4

There must have been a promise made before the fact.

Question 5

What does §90 of the Restatement of Promissory Estoppel state?

Answer 5

A promise is binding if the promisor should reasonably expect to induce action or forbearance from the promisee, and injustice can only be avoided by enforcement.

Question 6

What are the elements of Promissory Estoppel?

Answer 6

1. A promise made by the promisor that is expected to induce action or forbearance by the promisee.
2. The promisee reasonably relied on the promise.
3. Enforcement is necessary to avoid injustice.

Question 7

What is the remedy for Promissory Estoppel?

Answer 7

Reliance Damages.

Question 8

What types of situations can Promissory Estoppel enforce promises?

Answer 8

1. Intra-familial gift promises.
2. Charitable pledges/subscriptions.
3. Commercial contexts.

Question 9

What is the rule regarding consideration in family dealings?

Answer 9

Consideration is usually excluded because promises in family contexts are often gratuitous.

Question 10

What is a promise according to 2ndR § 90?

Answer 10

A promise is a manifestation of intention to act or refrain from acting in a specified way, justifying the understanding that a commitment has been made.

Question 11

What is an implied promise?

Answer 11

A promise that need not be express but may be implied from a party’s conduct.

Question 12

What is Quasi Contract Restitution?

Answer 12

It provides recovery for a plaintiff when no contract exists, provided the plaintiff conferred a benefit on the defendant and it would be unjust for the defendant to keep it.

Question 13

What are the elements of Quasi Contract Restitution?

Answer 13

1. The plaintiff confers a benefit on another person.
2. The conferrer expects compensation.
3. The defendant would be unjustly enriched if allowed to retain the benefit.

Question 14

What is an officious intermeddler?

Answer 14

A person who confers a benefit upon another without a contractual responsibility and seeks compensation for it.

Question 15

What is the remedy for Quasi Contract?

Answer 15

Reliance Damages.

Question 16

What is Promissory Restitution?

Answer 16

It occurs when one party has conferred a benefit upon another, and it would be unjust to retain the benefit without compensating the other party.

Question 17

What is the general rule regarding moral obligation in Promissory Restitution?

Answer 17

A subsequent promise based on a moral obligation is enforceable if it relates to a prior legal duty.

Question 18

What are common situations for Promissory Restitution?

Answer 18

1. Employer/Employee cases.
2. Services rendered for protection.
3. Debtor promises to pay an unenforceable debt.