Promissory Estoppel

Question 1

Elements

a. The donor’s intention to make a present transfer,
b. Actual or constructive delivery of the gift to the donee, and
c. Acceptance by the donee.
d. There is no bargain for exchange

Answer 1

Gifts (inter vivos)

Question 2

The donor’s intention to make a present transfer,
Actual or constructive delivery of the gift to the donee, and
Acceptance by the donee.

Answer 2

Gift is Complete and enforceable when all three elements are met.

Question 3

In essence, the ________ has title to the gifted property.

Answer 3

donee

Question 4

Elements:
an oral or written promise 
to do certain acts 
or to give real or personal property 
to a charity 
or for a charitable purpose.

Note that for formation purposes there is no bargain for exchange

Answer 4

Charitable Subscriptions

Question 5

Promise
To give property
To a charitable institution
Promise is supported by 
consideration or reliance.

Answer 5

Charitable Subscriptions

Enforceable when

Question 6

A promise which the promisor should reasonably expect to induce action or forbearance on the part of the promisee or a third person and which does induce such action or forbearance is binding if injustice can be avoided only by enforcement of the promise. The remedy granted for breach may be limited as justice requires.

Answer 6

Promissory Estoppel

Question 7

Elements:
Promise
Which the promisor should reasonably expect to induce action or forbearance on the part of promisee
Induces such action or forbearance
Injustice can be avoided only by enforcement of the promise.

Answer 7

Promissory Estoppel

Question 8

One of the functions of the ______________ __ ________ is to deny enforcement to a promise to make a gift. Such a promise is ordinarily enforced by virtue of the promisee’s reliance only if his conduct is foreseeable and reasonable

and involves a definite and substantial change of position which would not have occurred if the promise had not been made. In some cases, however, other policies reinforce the promisee’s claim.

Answer 8

doctrine of consideration

Question 9

American courts have traditionally favored ______ _______ and marriage settlements, and have found consideration in many cases where the element of exchange was doubtful or nonexistent. Where recovery is rested on reliance in such cases, a probability of reliance is enough

Answer 9

charitable subscriptions

Question 10

A _________ __________ is an oral or written promise to do certain acts or to give real or personal property to a charity or for a charitable purpose.

Answer 10

charitable subscription

Question 11

To enforce a __________ ___________ a party must establish that there was a promise to give property to a charitable institution and that the promise was supported by consideration or reliance.
Note “A hope or expectation, even though well founded, is not equivalent to either legal detriment or reliance.”

Answer 11

charitable subscription

Question 12

A ________ is created by the delivery of personal property by one person to another in trust for a specific purpose, pursuant to an express or implied contract to fulfill that trust.

Answer 12

bailment

Question 13

A ______ is the right to the beneficial enjoyment of property to which another person holds legal title.

Answer 13

trust

Question 14

Inherent in the ________ relationship is the requirement that the property be returned to the bailor, or duly accounted for by the bailee, when the purpose of the bailment is accomplished, or that it be kept until it is reclaimed by the bailor.

Answer 14

bailment

Question 15

Conduct inconsistent with the facts
Action by the other party in reliance on this conduct
Injury resulting from the plaintiff’s repudiation of its conduct.

Answer 15

Equitable Estoppel

Question 16

can only be used as a defense

Answer 16

Equitable Estoppel

Question 17

may be used as a cause of action

Answer 17

Promissory estoppel

Question 18

You prevent people from making a statement/claim against you, in their lawsuit.

Answer 18

Equitable Estoppel

Question 19

To estop the other person from saying that he/she did not make the promise.

Answer 19

Equitable Estoppel

Question 20

You sue people for breach of promise under

Answer 20

promissory estoppel.

Question 21

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 __ ______ ______ to the extent necessary to avoid injustice.

Answer 21

an option contract

Question 22

Rules
An option contract is not binding absent consideration.
An option contract which is not supported by consideration is a mere offer to sell which may be withdrawn at any time prior to acceptance.
Promissory Estoppel
When an option contract is conditioned upon certain acts, the performance of the acts may constitute a consideration to uphold a contract for an option.
There is no consideration when the acts were not intended to benefit the option offeror nor were incurred on behalf of the offeror
The motive for entering into a contract and the consideration are distinct and different things.
To be sufficient consideration, a promise must impose a legal obligation on the promisor.
An offeree’s power of acceptance is terminated when the offeror takes definite action inconsistent with an intention to enter into the proposed contract and the offeree acquires reliable information to that effect. R 2d K § 42

Answer 22

Promissory Estoppel & Option Contract

Question 23

A person ___________ ______ on another’s promise if the promisee acts in a way that he/she was not required to act.

Answer 23

detrimentally relies