Contracts

Question 1

Rescission

Answer 1

In a unilateral contract case, a rescission promise must be supported by either (i) an offer of new consideration, (ii) elements of promissory estoppel (i.e., detrimental reliance), or (iii) the offeree’s manifestation of an intent to make a gift of the obligation owed her.

Question 2

Non-Delegable Duties: Personal Judgment

Answer 2

Although, as a general rule, all contractual duties may be delegated to a third person, if the duties involve personal judgment and skill, they may not be delegated.

Question 3

Material Benefit Rule

Answer 3

Under the material benefit rule, some courts will enforce a promise if: (i) it is based on a material benefit that was previously conferred by the promisee on the promisor, and (ii) the promisee did not intend to confer the benefit as a gift. The material benefit rule is a minority position but represents the modern trend.