Module 8

Question 0

What is the point of promissory estoppel?

Answer 0

To provide a remedy for many promises/agreements that fail the test of enforceability under many traditional contract doctrines

Question 1

Is promissory estoppel?

Answer 1

Promises without consideration that are enforced because the promisee relied on the promise

Question 2

What is promissory estoppel designed to prevent?

Answer 2

The intricacies/details of law from frustrating justice

Question 3

Can a gratuitous promise be supported by promissory estoppel?

Answer 3

No because there’s no bargain, the injury is the consequence of the promise but doesn’t induce the making of the promise

Question 4

What is the first restatement’s definition of promissory estoppel?

Answer 4

A promise which the promisor should reasonably expect to induce action/forbearance of a definite and substantial character on the part of the promisee, and which does induce such action or forbearance is binding if injustice can be avoided only by the enforcement of the promise

Question 5

What is necessary to create promissory estoppel?

Answer 5

A promise (and the content must be clear)

• A statement of intent to take future action is not sufficient, and neither is an estimate
• you can base a promissory estoppel claim on an implied promise, but courts don’t like to do this

Question 6

What must the promisor reasonably anticipate in a promissory estoppel claim?

Answer 6

That the promise would lead the promisee to act or forebear

Question 7

what must the promisee be thinking when they rely on a promise in a promissory estoppel case?

Answer 7

They must be reasonable in relying on the promise

Question 8

What are the four changes the restatement 2 made to promissory estoppel?

Answer 8

A. Took out the words definite insubstantial character
B. Allowed flexibility of remedy
C. Allows reliance by a third-party on a promise
D. Binds charitable subscription/marriage settlements without proof of the promise

Question 9

The statute of frauds relate to promissory estoppel?

Answer 9

If a promise to give land is oral, the case involves noncompliance with the writing requirements of the statute of frauds as well as the absence of consideration

Question 10

How does family relate to promissory estoppel?

Answer 10

Promises made by family can now be enforced through this

Question 11

How do gifts of land relate to promissory estoppel?

Answer 11

If the promisee acts in reliance on a promise to give land, with the knowledge and assent of the promisor, takes possession of the land and makes improvements, courts of equity will grant specific performance ordering the promisor to deliver a conveyance or other remedy

Question 12

What did the restatement 2 do to the distinction made between misfeasance and nonfeasance?

Answer 12

Abandoned it, and lumped them both together calling it injurious reliance

Question 13

How does promissory estoppel deal with charitable subscriptions?

Answer 13

A charitable subscription is binding without proof that the promise induced action or forbearance. Courts favor charity and find consideration where there isn’t any

Question 14

Why does promissory estoppel allow charitable subscriptions to be enforced without the necessary components?

Answer 14

Enforces them because private philanthropy serves an important function in society

Question 15

What does the restatement 2 say about marriage settlements when it comes to promissory estoppel?

Answer 15

They are enforced without need of consideration or proof that the promise induced action/forbearance

Question 16

What is one modern use of promissory estoppel?

Answer 16

As a substitute for consideration in cases of gratuitous promises or any case for all of the elements of promissory estoppel are present

Question 17

How does promissory estoppel rescue failing contracts?

Answer 17

Is employed in cases where the cause of the failure is not related to consideration

Question 18

What are the different modern uses of promissory estoppel?

Answer 18

1) as a substitute for consideration
2) when reliance has happened
3) indefinite agreements
4) preliminary negotiations
5) disclaiming legal consequences
7) miscellaneous promises

Question 19

How does promissory estoppel change how you can withdraw an offer?

Answer 19

Justifiably injurious reliance on an offer renders it even revocable

Question 20

How do subcontractor cases break the normal rules of promissory estoppel?

Answer 20

Usually an offeree to a bilateral contract isn’t justified in relying on an offer before they have excepted it, but subcontractor contracts are different (have to rely on it before they accept it)

Question 21

Is subcontractors bid is really low, how does that affect the general contractor?

Answer 21

If they think it was based on a mistake, then reliance doesn’t apply

Question 22

How does Promissory estoppel change preparation to perform a unilateral contract?

Answer 22

Usually preparation doesn’t protect the offeree from revocation, but under promissory estoppel preparation can render the offer irrevocable

Question 23

How can promissory estoppel salvage indefinite contracts?

Answer 23

Can grant damages measured by lost opportunity costs, or reliance measure of damages

Question 24

What will promissory estoppel courts sometimes limit recovery to?

Answer 24

The amount expended in reliance on the promise

Question 25

How promissory estoppel deal with good faith?

Answer 25

Sometimes the court will say there was no contract of sale, defendant breached an obligation to negotiate in good faith and will limit the recovery to the costs incurred by plaintiff in reliance on the negotiations

Question 26

Why are lots of good faith cases not promissory estoppel ones?

Answer 26

Because every obligation has an implied promise of good faith, the breaching that is its own legal cause of action, and doesn’t need promissory estoppel

Question 27

How did the courts deal with situations where employers make illusory promises and include a clause that disclaims legal consequences?

Answer 27

Some courts have held that clause inapplicable

Question 28

What does promissory estoppel say about flexibility of remedy?

Answer 28

Is encouraged and courts should be free to choose any method of recovery (not just full or none)

Question 29

What is the official definition of promissory estoppel?

Answer 29

Implies a contract in law when no contract exists in fact. A promise which a promisor should reasonably expect to induce action/forbearance on the part of the promisee or third person and which does induce such action/forbearance is binding if injustice can be avoided only by enforcement of the promise

Question 30

What are the elements of promissory estoppel?

Answer 30

A) clear and definite promise
B) promisor intended to induce reliance by the promisee, and the promisee relied to the premise’s detriment
C) promise must be enforced to prevent injustice

Question 31

What other things will the court consider when determining if there is a promissory estoppel case?

Answer 31

The reasonableness of the premises reliance

Question 32

Estoppel can never arise unless there has been what?

Answer 32

Reliance

Question 33

What does the restatement 2 say about charitable subscriptions and marriage settlements ?

Answer 33

They are enforceable/binding without consideration and without detrimental reliance