Promissory Estoppel

Question 1

Promissory Estoppel

Answer 1

Where informal commitments that are not bargained for are enforceable.

Question 2

dual” life

Answer 2

Life 1: a type of (or substitute for) consideration that “perfects” contractual rights

Life 2: A separate cause of action based on reliance theory

Question 3

Promissory Estoppel and Remedies

Answer 3

When P.E. is used as a substitute for consideration, the plaintiff has full contractual rights, and is entitled to contract damages.

For P.E. as a separate C/A, the remedy is “as justice requires”; in practice, courts tend to limit recovery to out-of-pocket reliance.

Question 4

Test for Promissory Estoppel

Answer 4

1. Was there a promise?
2. Can the promise be reasonably expected to induce reliance?
3. Was there actual reliance?
4. Can injustice only be avoided by enforcing the promise?

Question 5

Rickets v. Scothorn

Answer 5

Equitable estoppel is the effect of a voluntary conduct of a party whereby he is absolutely precluded from asserting rights which might perhaps have otherwise existed, as against another person who in good faith relied upon such conduct, and has been led thereby to change his position for the worse

Question 6

Greiner v. Greiner,

Answer 6

A contract is formed when one promises to convey a specific tract of land and another is induced by the promise to substantially act or forbear

Question 7

Allegheny College v National Chautauqua County Bank of Jamestown

Answer 7

A charitable subscription is binding under subsection Rest § 90(1) without proof that the promise induced action or forbearance

Question 8

Option Contract

Answer 8

An offer which the offeror should reasonably expect to induce action or forbearance of a substantial character on the part of the offeree before acceptance and which does induce such action or forbearance is binding as an option contract to the extent necessary to avoid injustice.