Chapter 1: Formation Issues

Question 1

Promissory Estoppel

Answer 1

NC doesn’t recognize PE as a consideration substitute

It can be used defensively, NOT offensively (a party to an existing K has intentionally abandoned a legal right under the existing K.

Question 2

Employment Ks

Answer 2

At will employees are generally terminable for any reason.

NC courts strongly presume that employees are at will

If there is not a duration stated, there is a presumption that the K is at will. “Permanent employment” and “employment for life” are considered at will.

In NC to overcome a presumption of at will employment, the employee must give separate consideration.

Question 3

Termination of offers

Answer 3

In NC detrimental reliance will not make the offer irrevocable; thus any reliance costs incurred by the offeree prior to acceptance are at their own risk.

Question 4

Partial performance of a unilateral K

Answer 4

An offeror can revoke an offer for a unilateral K after the offeree as begun performance under the K, however the offeree is entitled to recover the reasonable value of the services performed before the revocation under the doctrine of quantum meruit (unjust enrichment)

Question 5

Counteroffer

Answer 5

In NC, to create a counteroffer, a change in the original offer must be material and must alter the legal relationship of the parties to the K.

However, a qualification or condition terminates the offer and acts as a new offer.